New Jersey pay stubs: state taxes and withholding
New Jersey paycheck withholding: graduated income tax plus 2026 employee contributions for unemployment, workforce, disability and family leave.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
New Jersey uses graduated income tax rates with several brackets, so higher earners have a larger share of their pay withheld. Employees complete Form NJ-W4, and employers use the Division of Taxation's withholding tables. There's no single rate to apply, so the calculator does the bracket work.
Other state payroll deductions
New Jersey is one of the few states where workers pay into several state programs through payroll. The employee rates for 2026 are:
- Unemployment insurance (UI): 0.3825%
- Workforce development / supplemental workforce fund: 0.0425%
- Temporary disability insurance (TDI): 0.19%
- Family leave insurance (FLI): 0.23%
Each contribution stops once the employee's wages reach that program's annual limit. The Department of Labor publishes the current rates and limits on its rate information page. Some employers run a private disability plan approved by the state, which can change the TDI line.
Local taxes
New Jersey municipalities do not withhold local income tax from employee wages. Newark does charge a payroll tax, but the employer pays it and it is not deducted from workers.
Federal withholding still applies
On top of the state items, withhold federal income tax based on Form W-4, Social Security at 6.2% up to the annual Social Security wage base, and Medicare at 1.45% of all wages. Once wages pass $200,000 for the year, Medicare picks up an extra 0.9%.
Creating a New Jersey pay stub with PayStubNest
Open the pay stub generator, enter hours and rate or a salary, and choose New Jersey. PayStubNest applies federal and state income tax withholding and carries year-to-date totals forward, which matters here because each state contribution stops at its own annual limit. List the UI, workforce, TDI and FLI amounts as separate lines so each one is easy to check. The exact amounts depend on pay, pay frequency, the employee's W-4 choices, any deductions and year-to-date totals. PayStubNest works all of that out automatically. Preview free, then pay only to download.
Record-keeping tip
New Jersey resets these contribution rates every January. Save the rate notice with that year's payroll records so you can explain any change to an employee. The state labor department also sets pay statement requirements, so check them if you are unsure what a stub must show.