New Jersey Payroll Taxes (2026)
What comes out of a New Jersey paycheck, what the employer pays on top, and the wage bases and rates that apply for the 2026 tax year. Written for whoever has to reconcile the numbers — employee or employer.
Tax year 2026 · Updated 2026-08-29 · New Jersey tax authority
Employee-side taxes in New Jersey
| Tax | Rate | 2026 limit |
|---|---|---|
| Federal income tax | Publication 15-T percentage method from Form W-4 | Varies |
| Social Security | 6.2% of wages | $184,500 wage base |
| Medicare | 1.45% of all wages | No cap |
| Additional Medicare Tax | 0.9% above $200,000 of wages | Employee only |
| New Jersey income tax | Graduated, 1.4% to 10.75% | Withheld each pay period |
| Unemployment insurance (worker) | 0.3825% of wages | $44,800 |
| Workforce development fund | 0.0425% of wages | $44,800 |
| Temporary Disability Insurance | 0.19% of wages | $171,100 |
| Family Leave Insurance | 0.23% of wages | $171,100 |
On a $60,000 salary, a single filer in New Jersey has about $11,820 withheld across the year and takes home $48,180. The New Jersey paycheck calculator breaks it down per paycheck.
Employer-side taxes in New Jersey
| Tax | Rate | Wage base | Cost on a $60,000 employee |
|---|---|---|---|
| Social Security (employer match) | 6.2% | $184,500 | $3,720 |
| Medicare (employer match) | 1.45% | No cap | $870 |
| FUTA (federal unemployment) | 0.6% effective after the 5.4% credit | $7,000 | $42 |
| NJ SUI (new employer rate) | 2.8% | $44,800 | $1,254 |
Employing someone on $60,000 in New Jersey therefore costs roughly $5,886 above salary in payroll tax alone — about 9.8% of pay — before benefits, workers' compensation or equipment. Experience rating means an established employer's SUI rate can be well above or below the new-employer figure shown here.
Unemployment insurance in New Jersey
The New Jersey taxable wage base for 2026 is $44,800 per employee, and the new-employer rate is 2.8%. That is one of the higher wage bases in the country, so unemployment tax is a larger share of payroll cost here than in states that stop at the federal $7,000 floor.
Employers in a federal credit reduction state lose part of the 5.4% FUTA credit and pay more than the standard 0.6%. The list is published with Form 940 Schedule A after year end and changes annually.
New Jersey minimum wage and pay rules
The New Jersey minimum wage for 2026 is $15.92 an hour. New Jersey indexes annually; seasonal and very small employers pay a lower tier. Overtime follows the federal rule of one and a half times the regular rate after forty hours in a workweek.
Registration and filing
An employer with staff in New Jersey generally needs a state withholding account, a state unemployment insurance account, and must report new hires to the state directory within the statutory window — twenty days under federal law, shorter in several states. Deposit schedules for state withholding depend on the size of your liability and are set by the state; federal deposit schedules are monthly or semi-weekly based on your lookback period.
Details and forms are on the New Jersey revenue authority site. Nothing here is a substitute for their current publication — rates and thresholds change, sometimes mid-year.
Frequently asked questions
What payroll taxes do employers pay in New Jersey?
The employer half of Social Security and Medicare at 7.65%, FUTA at an effective 0.6% on the first $7,000 of wages, and New Jersey unemployment insurance on the first $44,800 of each employee's wages at an experience-rated percentage.
What is the New Jersey SUI wage base for 2026?
$44,800 per employee. The new-employer rate is 2.8%; established employers are experience rated.
Does New Jersey have a state income tax to withhold?
Yes. New Jersey has no standard deduction and a joint-only 2.45% bracket.
How much does an employee really cost in New Jersey?
Payroll taxes alone add about 9.8% to a $60,000 salary. Benefits, workers' compensation, equipment and space typically take the full loaded cost to 1.25 to 1.4 times salary.
Related
For the employee view, the New Jersey paycheck calculator shows every line on a New Jersey paycheck. The employer payroll tax calculator covers the employer side generally.