December, 17th 2025
Each state has unique income tax withholding rules. Below are New Jersey's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | NJ |
|---|---|
| State Tax Withholding State Code | 34 |
| Acceptable Exemption Form | NJ-W4 |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | S, M / Number of Exemptions |
| TSP Deferred | No |
| Special Coding | First Position: S = Single; M = Married/Civil Union Couple Joint, Head of Household, Surviving Spouse/Surviving Civil Union Partner. 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. |
| Official State Tax Website | Visit Official Website |
New Jersey's NJ-W4 uses a total exemption count. Generally, an employee claims a number equal to themselves, spouse, and dependents. For example, a married person with two children would enter '4' allowances (for self, spouse, two kids). NJ also allows an extra 1 if the taxpayer or spouse is 65 or older and another 1 if blind (since NJ's tax code provides additional personal exemptions for age 65+ and for blindness) - these would be included in the number on Line 4 of NJ-W4. The form doesn't explicitly list them, but the instructions indicate you may add to your allowances for being 65+ or blind.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | Base allowance |
| Spouse | 1 allowance | If filing jointly |
| Each Dependent | 1 allowance | Per dependent |
| Age 65+ (Employee or Spouse) | 1 allowance each | Additional allowance if 65 or older |
| Blind (Employee or Spouse) | 1 allowance each | Additional allowance if blind |
Total Allowances = Yourself + Spouse + Dependents + Age/Blind Allowances
New Jersey cautions married couples with both working to avoid double-counting dependents on both W-4s. The age 65+ and blind allowances are included in the total on Line 4 of NJ-W4.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
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 × Number of Exemptions
Apply the taxable income computed in step 3 to the tax withholding table to determine the annual New Jersey tax withholding.
Divide the annual New Jersey tax withholding by 26 to obtain the biweekly New Jersey tax withholding.
Want to calculate in an easier way? Learn how to calculate New Jersey taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $1,000 |
Formula: $1,000 × Number of Exemptions
Exemption allowance per exemption.
This is the standard rate for single income earners. It assumes you are taxed at the higher single rate bracket immediately.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $20,000 | $0 | + | 1.50% | $0 |
| $20,000 | $35,000 | $300 | + | 2.00% | $20,000 |
| $35,000 | $40,000 | $600 | + | 3.90% | $35,000 |
| $40,000 | $75,000 | $795 | + | 6.10% | $40,000 |
| $75,000 | $500,000 | $2,930 | + | 7.00% | $75,000 |
| $500,000 | $1,000,000 | $32,680 | + | 9.90% | $500,000 |
| $1,000,000 | and over | $82,180 | + | 11.80% | $1,000,000 |
This is the standard rate for couples/families. It withholds slightly less tax because it assumes you qualify for the more favorable "Joint" tax brackets.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $20,000 | $0 | + | 1.50% | $0 |
| $20,000 | $50,000 | $300 | + | 2.00% | $20,000 |
| $50,000 | $70,000 | $900 | + | 2.70% | $50,000 |
| $70,000 | $80,000 | $1,440 | + | 3.90% | $70,000 |
| $80,000 | $150,000 | $1,830 | + | 6.10% | $80,000 |
| $150,000 | $500,000 | $6,100 | + | 7.00% | $150,000 |
| $500,000 | $1,000,000 | $30,600 | + | 9.90% | $500,000 |
| $1,000,000 | and over | $80,100 | + | 11.80% | $1,000,000 |
Withholds at a higher percentage than B to account for the "second salary" bumping you up a bracket.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $20,000 | $0 | + | 1.50% | $0 |
| $20,000 | $40,000 | $300 | + | 2.30% | $20,000 |
| $40,000 | $50,000 | $760 | + | 2.80% | $40,000 |
| $50,000 | $60,000 | $1,040 | + | 3.50% | $50,000 |
| $60,000 | $150,000 | $1,390 | + | 5.60% | $60,000 |
| $150,000 | $500,000 | $6,430 | + | 6.60% | $150,000 |
| $500,000 | $1,000,000 | $29,530 | + | 9.90% | $500,000 |
| $1,000,000 | and over | $79,030 | + | 11.80% | $1,000,000 |
Withholds significantly more to cover higher tax brackets.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $20,000 | $0 | + | 1.50% | $0 |
| $20,000 | $40,000 | $300 | + | 2.70% | $20,000 |
| $40,000 | $50,000 | $840 | + | 3.40% | $40,000 |
| $50,000 | $60,000 | $1,180 | + | 4.30% | $50,000 |
| $60,000 | $150,000 | $1,610 | + | 5.60% | $60,000 |
| $150,000 | $500,000 | $6,650 | + | 6.50% | $150,000 |
| $500,000 | $1,000,000 | $29,400 | + | 9.90% | $500,000 |
| $1,000,000 | and over | $78,900 | + | 11.80% | $1,000,000 |
The most aggressive withholding rate for very high earners to prevent underpayment penalties.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $20,000 | $0 | + | 1.50% | $0 |
| $20,000 | $35,000 | $300 | + | 2.00% | $20,000 |
| $35,000 | $100,000 | $600 | + | 5.80% | $35,000 |
| $100,000 | $500,000 | $4,370 | + | 6.50% | $100,000 |
| $500,000 | $1,000,000 | $30,370 | + | 9.90% | $500,000 |
| $1,000,000 | and over | $79,870 | + | 11.80% | $1,000,000 |
ezPaycheck simplifies payroll calculations, including New Jersey's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date New Jersey state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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