If you’re wondering, “How do I figure out how much money I take home in New Jersey” we’ve got you covered.
Use our simple paycheck taxes calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in New Jersey.
Paycheck Calculator
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is $60,000.00 per year in the state of New Jersey, your net pay (or take home pay) will be $48,551.98 after tax deductions of 19.08% (or $11,448.02). Deductions include a total of [1] 9.07% (or $5,440.50) for the federal income tax, [2] 2.36% (or $1,417.52) for the state income tax, [3] 6.20% (or $3,720.00) for the social security tax and [4] 1.45% (or $870.00) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
Meanwhile, get ahead with our free resources:
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period. You can also check out our salary to hourly wage and hour-to-salary calculator.
Overview of New Jersey Taxes
New Jersey is home to a significant number of millionaires, holding approximately 9.76% of households.
The state also stands out for having 76.4% of places with per capita incomes above the national average. Furthermore, nine of New Jersey’s counties are among the 100 wealthiest in the United States.
If you decide to start a new job in the “Garden State”, here’s what to expect tax-wise.
New Jersey operates under a progressive income tax system, with tax rates ranging from 1.40% to 10.75%, making the top rate one of the highest in the United States.
Employers in New Jersey are responsible for withholding FICA taxes, including 1.45% for Medicare and 6.2% for Social Security, with employers matching these contributions.
Any earnings exceeding $200,000 are subject to an additional 0.9% Medicare surtax, which employers do not match.
It’s essential to note that while Newark has a 1% payroll tax, it is levied on employers, not workers, and no cities in New Jersey impose local income taxes.
New Jersey’s tax situation appears less favorable due to its high progressive income tax rates, particularly for high earners, although it doesn’t impose local income taxes in cities.
Median Household Income in New Jersey
Salary in each state is typically based on the cost of living. While salaries vary widely based on position, the median household income in your state can give you a glimpse at the average salary a household is earning in your region.
| Year | Median Household Income |
|---|---|
| 2021 | $89,296 |
| 2020 | $85,245 |
| 2019 | $85,751 |
| 2018 | $81,740 |
| 2017 | $80,088 |
| 2016 | $76,126 |
| 2015 | $72,222 |
| 2014 | $71,919 |
| 2013 | $70,165 |
| 2012 | $69,667 |
| 2011 | $67,458 |
Starting at $67,458 in 2011, the median household income steadily climbed, reaching $89,296 in 2021.
Rising median household income is generally a positive indicator of economic well-being and can signify increased purchasing power and financial security for families.
While there may be fluctuations in income from year to year, the overall trend paints a favorable picture of the region’s economic health during this period.
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Become familiar with your payroll deductions
- Understand techniques for reducing your tax
- Fully utilize your work-related perks
- Develop a financial plan and define financial goal
- Look into additional income through extra hours or performance incentives
- Regularly check your pay stubs for inaccuracies
