Tax rate used in calculating New Jersey state tax for year 2016State Abbreviation: | NJ | State Tax Withholding State Code: | 34 | Acceptable Exemption Form: | NJ-W4 | Basis For Withholding: | State or Federal Exemptions | Acceptable Exemption Data: | S, M, C, D, E /Number of Exemptions | TSP Deferred: | No | Non-Federal 401(k) Deferred: | Yes | Special Coding: | Determine the Total Number Of Allowances Claimed field as follows: | | First Position - | | If Item 3 of the NJ-W4 Contains: | Enter: | | A | S | | B | M | | C | C | | D | D | | E | E | | If Item 3 of the NJ-W4 is Blank
and if the Status on Line 2 Is: | Enter: | | Single | S | | Married/Civil Union
Couple Joint | M | | Married /Civil Union
Couple Separate | S | | Head of Household | M | | Surviving Spouse/Surviving
Civil Union Partner | M | | Second and Third Positions - Enter the total number of exemptions claimed in Item 4 of the NJ-W4. If less than 10, precede with a zero. | Additional Information: | If a state income tax certificate has not been processed or if a valid state exemption code is not present, the Federal exemptions will be used in the computation of state tax. |
Withholding Formula >(New Jersey Effective 2016)<- Subtract the nontaxable biweekly non-Federal 401(k) contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages. Note: Do not subtract the biweekly Federal Thrift Savings Plan contribution.
- Multiply the adjusted gross biweekly wages computed in step 1 by 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
Exemption Allowance = $1,000 x Number of Exemptions
- Apply the taxable income computed in step 3 to the following table to determine the annual New Jersey tax withholding.
Tax Withholding Table
Single or Married/Civil Union Couple- Filing Separately
(Rate Table A) | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0 | $ 20,000 | $ 0 | plus | 1.5% | $ 0 | 20,000 | 35,000 | 300 | plus | 2.0% | 20,000 | 35,000 | 40,000 | 600 | plus | 3.9% | 35,000 | 40,000 | 75,000 | 795 | plus | 6.1% | 40,000 | 75,000 | >500,000< | 2,930 | plus | 7.0% | 75,000 | >500,000 | and over | 32,680 | plus | 9.9% | 500,000< |
Married/Civil Union Couple - Filing Jointly or Head of Household
or
Surviving Spouse/Surviving Civil Union Partner
(Rate Table B) | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0 | 20,000 | $ 0 | plus | 1.5% | $ 0 | 20,000 | 50,000 | 300 | plus | 2.0% | 20,000 | 50,000 | 70,000 | 900 | plus | 2.7% | 50,000 | 70,000 | 80,000 | 1,440 | plus | 3.9% | 70,000 | 80,000 | 150,000 | 1,830 | plus | 6.1% | 80,000 | 150,000 | >500,000< | 6,100 | plus | 7.0% | 150,000 | >500,000 | and over | 30,600 | plus | 9.9% | 500,000< |
Optional Rate Table C | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0 | $ 20,000 | $ 0 | plus | 1.5% | $ 0 | 20,000 | 40,000 | 300 | plus | 2.3% | 20,000 | 40,000 | 50,000 | 760 | plus | 2.8% | 40,000 | 50,000 | 60,000 | 1,040 | plus | 3.5% | 50,000 | 60,000 | 150,000 | 1,390 | plus | 5.6% | 60,000 | 150,000 | >500,000< | 6,430 | plus | 6.6% | 150,000 | >500,000 | and over | 29,530 | plus | 9.9% | 500,000< |
Optional Rate Table D | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0 | $ 20,000 | $ 0 | plus | 1.5% | $ 0 | 20,000 | 40,000 | 300 | plus | 2.7% | 20,000 | 40,000 | 50,000 | 840 | plus | 3.4% | 40,000 | 50,000 | 60,000 | 1,180 | plus | 4.3% | 50,000 | 60,000 | 150,000 | 1,610 | plus | 5.6% | 60,000 | 150,000 | >500,000< | 6,650 | plus | 6.5% | 150,000 | > 500,000 | and over | 29,400 | plus | 9.9% | 500,000< |
Optional Rate Table E | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0 | $ 20,000 | $ 0 | plus | 1.5% | $ 0 | 20,000 | 35,000 | 300 | plus | 2.0% | 20,000 | 35,000 | 100,000 | 600 | plus | 5.8% | 35,000 | 100,000 | >500,000< | 4,370 | plus | 6.5% | 100,000 | >500,000 | and over | 30,370 | plus | 9.9% | 500,000< |
- Divide the annual New Jersey tax withholding by 26 to obtain the biweekly New Jersey tax withholding.
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