New Jersey payroll taxes
Every tax withheld from a New Jersey paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: nj.gov, taxfoundation.org, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| New Jersey SUTA | 0.425% | 2.8% (new) | $44,800 |
| Temporary Disability Insurance (employee) | 0.19% | 0.5% | $171,100 |
| Family Leave Insurance | 0.23% | — | $171,100 |
| Unemployment + Workforce Development (employee share) | 0.425% | — | $44,800 |
| New Jersey income tax | 1.4%–10.75% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
The New Jersey SUTA wage base changes to $46,400 in 2027.
State unemployment insurance
New Jersey charges new employers 2.8% on the first $44,800 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.5% to 5.8%. FY Jul 2026-Jun 2027 new employer rate is UI 2.6825% + WF/SWF 0.1175% = 2.8%. The employee rate is UI 0.3825% + WF/SWF 0.0425% = 0.425%. The 2027 base of $46,400 is in a rule proposal (comment period ends Nov 7, 2026) and is not final.
Workforce Development/Supplemental Workforce Fund (WF/SWF) 0.1175%, included in the new employer rate. Employer Disability Insurance (TDI) is 0.5% for new employers (experience-rated). Employee TDI 0.19% and FLI 0.23% are separate (2026).
Register and file with the New Jersey unemployment tax agency.
Paid leave and disability programs
- Temporary Disability Insurance (employee): employees pay 0.19%, employers pay 0.5% on wages up to $171,100 (maximum $325.09 a year). Employee 0.19% on first $171,100 (2026). Employer TDI is experience-rated 0.10%-0.75% on a separate $44,800 employer wage base; 0.50% shown is the new-employer rate (state plan). 2027 employee rate 0.24% on $177,100; employer base $46,400.
- Family Leave Insurance: employees pay 0.23% on wages up to $171,100 (maximum $393.53 a year). Employee-only. 0.23% on first $171,100 in 2026; 0.24% on $177,100 in 2027.
- Unemployment + Workforce Development (employee share): employees pay 0.425% on wages up to $44,800 (maximum $190.40 a year). Employee UI 0.3825% + WF/SWF 0.0425% = 0.425% on first $44,800 (2026); same rates in 2027 on $46,400. Employer SUI separate.
Income tax withholding
New Jersey has a graduated income tax with 7 brackets, from 1.4% up to 10.75% on taxable income over $1,000,000 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in New Jersey?
- Social Security, Medicare, federal unemployment (FUTA) and New Jersey unemployment insurance (SUTA), plus Temporary Disability Insurance (employee).
- What is the New Jersey SUTA wage base for 2026?
- $44,800 per employee. It changes to $46,400 in 2027.
- Does New Jersey require state income tax withholding?
- Yes. Employers withhold New Jersey income tax based on the employee's state withholding certificate or federal W-4.