New Jersey rules
How New Jersey taxes your paycheck in 2026
New Jersey runs a progressive income tax with one of the gentlest entry rates in the country — just 1.4% on the first slice of income — but a steep 10.75% top rate for millionaires. There are also a few small insurance premiums that fund the state's generous disability and family-leave programs.
New Jersey income tax: 1.4% to 10.75%
The New Jersey Division of Taxation administers these brackets on a marginal basis. Single and married filers use slightly different thresholds; the table below shows single filers.
| Rate | Taxable income |
|---|---|
| 1.4% | $0 – $20,000 |
| 1.75% | $20,000 – $35,000 |
| 3.5% | $35,000 – $40,000 |
| 5.525% | $40,000 – $75,000 |
| 6.37% | $75,000 – $500,000 |
| 8.97% | $500,000 – $1,000,000 |
| 10.75% | Over $1,000,000 |
The small insurance premiums (TDI & FLI)
New Jersey funds two well-known benefit programs through tiny payroll premiums:
- Temporary Disability Insurance (TDI) — replaces income during a non-work illness or injury.
- Family Leave Insurance (FLI) — paid leave to bond with a new child or care for a family member.
Each is a small fraction of a percent of wages up to an annual cap, so they barely move your take-home compared with the income tax itself.
Comparing New Jersey to neighbors
New Jersey sits between high-tax New York and lower-tax states. Run the same salary through New York or a no-tax state like Florida to see how much geography is worth.
Questions
New Jersey salary calculator FAQ
What is the New Jersey income tax rate for 2026?
New Jersey has a progressive income tax with rates from 1.4% up to 10.75%, administered by the Division of Taxation. The top 10.75% rate applies to taxable income above $1 million.
How much is taken out of a paycheck in New Jersey?
A New Jersey paycheck is reduced by federal income tax, 6.2% Social Security, 1.45% Medicare and New Jersey state income tax (1.4% to 10.75%). The state also withholds small unemployment, disability and family-leave insurance premiums.
Does New Jersey have disability and family leave deductions?
Yes. New Jersey withholds Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) premiums, each a small fraction of a percent of wages up to an annual wage cap. They are far smaller than the state income tax.
What is the take-home pay on $85,000 in New Jersey?
A single filer earning $85,000 in New Jersey takes home roughly $62,000 to $64,000 a year after federal tax, FICA and state income tax. Use the calculator above for your exact figure.
- Sources: NJ Division of Taxation (2026 brackets) · NJ Dept of Labor (TDI/FLI) · IRS Rev. Proc. 2025-32 · SSA wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
← Back to the national salary calculator · Compare: New York · Florida · Illinois