When you start a new job in New Jersey, you are required to complete Form NJ-W4 (Employee's Withholding Allowance Certificate). Unlike the federal W-4, New Jersey uses specific Rate Tables to determine exactly how much state income tax should be withheld from your paycheck.
The Different NJ-W4 Tables Explained
The New Jersey Division of Taxation provides multiple tables based on your filing status and whether you or your spouse have multiple sources of income:
Table A: Used for individuals filing as Single or Married/Civil Union Partner Filing Separately.
Table B: Used for Married/Civil Union Couples Filing Jointly, Heads of Household, or Qualifying Widow(er)s.
Table C: This is the "Two-Earner" table. You should select this if you have more than one job at a time or if you are filing jointly and both you and your spouse work. This table uses higher rates to ensure you don't owe a large balance at the end of the year.
How to Use This Calculator
This tool helps you estimate your New Jersey state tax obligation by following these steps:
Annual Gross Income: Enter your total expected taxable income for the year (before taxes but after pre-tax deductions like 401k).
Filing Status: Choose the status that matches your legal filing intent.
Rate Table: Select "Standard" if you have one primary income source. Select "Table C" if you are checking the box on NJ-W4 for "Two earners/Multiple jobs."
Realistic Example: Married Couple in NJ
Imagine a couple filing jointly with a combined household income of $85,000. They decide to use the Standard Table (Table B).
The first $20,000 is taxed at 1.5%.
Income between $20,000 and $50,000 is taxed at 2.0%.
Income between $50,000 and $70,000 is taxed at 2.7%.
Income between $70,000 and $80,000 is taxed at 3.9%.
The remaining $5,000 (up to $85,000) is taxed at 6.1%.
Using our calculator, this results in an annual NJ tax of approximately $2,135, which breaks down to about $82.12 every two weeks.
Frequently Asked Questions
Should I check the "Rate Table" box on my NJ-W4?
If you have a second job, or your spouse works and your combined income puts you into a higher tax bracket, checking this box (which triggers Table C) prevents under-withholding. If you don't check it, you might owe a significant amount when you file your NJ-1040.
What is the highest tax rate in New Jersey?
Currently, New Jersey's top marginal tax rate is 10.75% (often calculated as 11.8% in withholding tables for very high earners) for income exceeding $1,000,000.
Does this include NJ UI/HC/WF or FLI?
No, this calculator specifically estimates New Jersey Gross Income Tax withholding. Your paycheck will also show small deductions for Unemployment Insurance (UI), Disability Insurance (DI), and Family Leave Insurance (FLI).