Key figures
New Jersey payroll
2026, with sources
Four contributions on every paycheck
New Jersey payroll carries state income tax withholding (rates run up to 10.75%) and four Department of Labor contributions: unemployment insurance, workforce development funds, Temporary Disability Insurance and Family Leave Insurance. Employees contribute to all four; employers to UI, workforce funds and TDI. The 2026 taxable wage base for UI and employer TDI is $44,800; employee TDI and FLI run to $171,100.
A new employer pays 2.6825% UI and 0.1175% workforce funds (2.8% together) and 0.5% TDI for its first three calendar years, then an experience-rated rate. Employers may provide TDI or FLI through an approved private plan instead of the state plan. Withholding, UI, TDI and FLI are reported together each quarter on Forms NJ-927 and WR-30, due the 30th day of the month after the quarter.
For an employee earning $90,000 in 2026, the employee’s share is $171 of TDI (0.19%), $207 of FLI (0.23%) and $190.40 of UI and workforce contributions (0.425% of $44,800). A new employer’s share on the same employee is $1,254.40 for UI and workforce funds (2.8% of $44,800) and $224 of TDI (0.5% of $44,800).
Wages and timing
New Jersey’s minimum wage rises each January 1 with inflation: to $16.48 on January 1, 2027, announced by the Department of Labor in September 2026. The rate for seasonal employers and those with fewer than six employees is catching up on a schedule set in 2019, and reaches $16.25 in 2027.
- Minimum wage $15.92 an hour in 2026; $15.23 for seasonal and small employers.
- Pay at least twice a month on regular paydays set in advance.
- Final wages by the next regular payday for the period the employee left.
- New hires and independent contractors reported within 20 days.
Jersey City, Newark and Pennsylvania
Jersey City and Newark each levy a 1% employer payroll tax on payroll for work in the city. It is an employer expense, not a withholding.
New Jersey and Pennsylvania have a reciprocal agreement for state income tax: a Pennsylvania resident who files Form NJ-165 with a New Jersey employer has Pennsylvania tax withheld instead of New Jersey tax.
Deadlines
- Within 20 days of hireReport each new hire
- Apr 30, Jul 30, Oct 30, Jan 30Quarterly withholding, UI, TDI and FLI report and wage reportNJ-927 and WR-30
- Feb 15Annual reconciliation with W-2s, electronicallyNJ-W-3
The federal baseline
This page covers what New Jersey adds. The federal rules underneath it apply here too.
Common questions
Does New Jersey have state disability and paid family leave deductions?
Yes, and both sides pay. In 2026 the employee pays 0.19% for Temporary Disability Insurance and 0.23% for Family Leave Insurance on wages up to $171,100, and 0.425% toward UI and workforce funds on the first $44,800. The employer pays UI (2.6825% for a new employer), 0.1175% to workforce funds and 0.5% TDI on the first $44,800.
Our New Jersey employee lives in Pennsylvania. Which state do we withhold for?
No, if they file Form NJ-165. New Jersey and Pennsylvania have a reciprocal agreement: a Pennsylvania resident working in New Jersey who files Form NJ-165 has Pennsylvania tax withheld instead. Without the form, the employer withholds New Jersey tax.
Are there local payroll taxes in New Jersey?
In Jersey City or Newark, yes. Both cities charge employers a 1% payroll tax on payroll for work in the city. In Jersey City employers with quarterly payroll under $2,500 are exempt and Jersey City residents’ wages are excluded. Neither tax is withheld from employees.
Payroll next door
- DEDelaware payrollDelaware payroll means withholding, unemployment insurance on the first $14,500 of wages, and, from 10 employees, Delaware Paid Leave. Wilmington adds a 1.25% wage tax.
- NYNew York payrollNew York payroll is state and city at once: one NYS-45 for withholding and UI, a disability and Paid Family Leave policy you buy from a carrier, the MCTMT in the commuter district, and NYC’s own leave law.
- PAPennsylvania payrollPennsylvania’s state payroll is light: 3.07% flat withholding and UC on the first $10,000. The work is local: earned income tax under Act 32, the Local Services Tax, and Philadelphia’s 3.735% Wage Tax.
How New Jersey compares
- No tax on wagesStates with no state income tax on wagesNew Jersey: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programNew Jersey: state paid leave or disability program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesNew Jersey: city, county or district taxes on wages. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the New Jersey guide
- AccountingAccounting and state tax in New JerseyCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in New JerseySales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in New JerseyPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in New JerseyRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in New JerseyCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.