Updated for 2026 · 7 NJ Tax Brackets · No Local Income Tax
New Jersey Paycheck Calculator — State Tax, FLI & FICA · Free 2026
Free New Jersey paycheck calculator 2026. See your exact take-home after federal tax, NJ Gross Income Tax (1.4%–10.75%), FLI, and FICA.
NJ state tax: 1.4%–10.75%
No local tax
Min wage: $15.92/hr
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New Jersey NJ-W4 note: New Jersey requires both a federal W-4 and a state Form NJ-W4. New Jersey uses a $1,000-per-exemption system instead of a standard deduction — the more exemptions you claim, the less NJ tax is withheld. New Jersey has no local income tax anywhere in the state, unlike New Jersey's NYC/Yonkers system.
Note: New Jersey Gross Income Tax uses 7 progressive brackets (1.4%–10.75% for 2026), with different thresholds for single/MFS filers versus joint/HoH filers. New Jersey also deducts a small employee-side Family Leave Insurance (FLI) and Unemployment/Workforce Development (UI/WF) payroll tax. This estimate uses 2026 IRS Publication 15-T federal withholding tables and 2026 NJ-1040-ES state tax rate schedules. Actual withholding may vary based on your W-4/NJ-W4 elections and payroll system.
Note: If your actual paycheck is lower than this estimate, check FLI/UI-WF deduction amounts, overtime, or W-4 elections against our pay stub guide.
✓ Reviewed for AccuracyReviewed by Jordan Ellis — Senior Payroll & Tax Analyst · Last reviewed: June 2026
1.4%–10.75%New Jersey Gross Income Tax — 7 progressive brackets for tax year 2026
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$0 local taxNew Jersey has no city or county income tax anywhere in the state
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$15.92 per hr2026 minimum wage — uniform statewide, among the highest in the nation
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FLI + UI-WFMandatory payroll deductions unique to New Jersey
Section 1 — Free Tool
New Jersey Paycheck Calculator 2026
New Jersey taxes wage income at the state level through 7 progressive brackets — but unlike New York or Pennsylvania, no New Jersey city or county imposes its own local income tax on top. Enter your pay details below to see an exact breakdown for your specific situation.
🌉 New Jersey Has 7 State Tax Brackets — No Local Income Tax Anywhere
New Jersey Gross Income Tax runs from 1.4% to 10.75% for 2026 across seven progressive brackets, with separate, more favorable thresholds for joint filers to reduce the "marriage penalty." Unlike New York City or Philadelphia, no New Jersey municipality — not Newark, not Jersey City, not Trenton — adds its own local income tax on top of the state rate. What you see in the state tax bracket table below is the complete state-level income tax picture, full stop.
Section 2 — New Jersey Tax Structure
New Jersey's State Income Tax — What It Means for Your Paycheck
New Jersey uses a personal exemption system rather than a standard deduction, and its bracket thresholds are fixed in statute — meaning they don't automatically rise with inflation the way federal brackets do. Here's the complete 2026 picture.
2026 New Jersey Gross Income Tax brackets — single filers / married filing separately (Table A)
Taxable Income
Marginal Rate
$0 – $20,000
1.4%
$20,000 – $35,000
1.75%
$35,000 – $40,000
3.5%
$40,000 – $75,000
5.525%
$75,000 – $500,000
6.37%
$500,000 – $1,000,000
8.97%
Over $1,000,000
10.75%
Real-world example: A single filer with $100,000 of NJ taxable income owes approximately $4,244 in New Jersey Gross Income Tax alone — an effective state rate of about 4.24%. A married couple filing jointly at the same $100,000 owes only $2,750 (2.75% effective), since New Jersey's joint-filer brackets are structured to reduce the "marriage penalty" common in other states' tax codes.
New Jersey's real advantage — no local income tax: Whether you live in Newark, Jersey City, Trenton, Camden, or a small suburban township, you pay the same New Jersey Gross Income Tax and zero additional local income tax. This contrasts sharply with New York (NYC and Yonkers residents pay a local surcharge on top of state tax) and Pennsylvania (Philadelphia imposes its own wage tax). For New Jersey residents who commute to work in either of those cities, this matters directly — see the commuter tax section below.
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Working in New York City? You'll File Two Returns
New Jersey and New York do not have a reciprocal tax agreement. If you live in New Jersey and work in NYC, you must file a New York nonresident return (Form IT-203) and a New Jersey resident return (NJ-1040), claiming a credit for taxes paid to New York on Schedule NJ-COJ. The credit covers NY State tax, but not the NYC local resident tax — since NJ residents working in NYC don't pay NYC local tax at all (that tax applies only to city residents). Nearly 400,000 people make this daily commute.
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Working in Philadelphia? Different Story — True Reciprocity
Unlike New York, Pennsylvania and New Jersey do have a genuine Reciprocal Personal Income Tax Agreement. A New Jersey resident working in Pennsylvania pays zero Pennsylvania state income tax on those wages — only New Jersey tax applies. To claim this, file Form REV-419 with your Pennsylvania employer. Note this reciprocity doesn't extend to the City of Philadelphia's separate wage tax, which New Jersey residents working in Philadelphia do still owe (with an NJ credit available).
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New Jersey's Fixed Brackets — No Automatic Inflation Adjustment
Unlike federal tax brackets, which the IRS adjusts for inflation every year, New Jersey's income tax brackets are fixed in statute and only change when the Legislature amends the law. This makes New Jersey's brackets unusually "sticky" — the same dollar thresholds have applied for years, meaning inflation alone can gradually push more of your income into higher brackets over time ("bracket creep") without any real increase in purchasing power.
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The Property Tax Trade-Off
New Jersey's income tax is only part of the picture. The state has the highest average effective property tax rate in the nation — approximately 2.23%, meaning a $400,000 home can carry an annual property tax bill approaching $9,000. New Jersey does offer meaningful relief: a property tax deduction (up to $15,000) or a $50 credit on the state return, plus the Homestead Benefit program and, under the federal One Big Beautiful Bill Act, a SALT deduction cap raised to $40,000 for 2026 — a major change for NJ's many dual high-income-tax, high-property-tax households.
Section 3 — Paycheck Breakdown
How Your New Jersey Paycheck Is Calculated — Step by Step
New Jersey's paycheck math includes federal tax, state tax, a small state payroll tax, and FICA — but no local income tax layer, unlike New York or Pennsylvania. Here is the complete calculation sequence for a New Jersey employee, with specifics relevant to New Jersey's dominant industries: pharmaceuticals, finance, logistics, and professional services.
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Step 1: Gross Pay — Starting Point
Annual salary ÷ pay periods (salaried), or hours × hourly rate (hourly) — use our salary-to-hourly converter if you need to switch between the two. New Jersey minimum wage for 2026: $15.92/hr, uniform statewide — the same rate applies whether you work in Newark or a rural township. Smaller and seasonal employers (fewer than 6 employees) pay a slightly lower $15.23/hr. For tipped hospitality workers: employers may pay a cash wage as low as $6.05/hr, with tips required to bring total pay to at least the full minimum wage. For overtime-eligible workers: New Jersey follows the federal FLSA rule only — overtime after 40 hours in a workweek, with no daily overtime requirement. See Section 4 for full overtime and tipped-wage rules.
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Step 2: Pre-Tax Deductions — Reduce Both Federal and State Taxable Income
Traditional 401(k) contributions (up to $23,500/yr in 2026, plus $7,500 catch-up if age 50+), HSA contributions ($4,300 single / $8,550 family), and Section 125 health/dental/vision premiums reduce federal taxable wages — and in New Jersey, they generally reduce your state taxable income too, as covered in our paycheck tax deduction guide. This makes pre-tax contributions especially valuable in New Jersey, since they shrink your income across both tax layers at once.
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Step 3: Federal Income Tax
Your employer applies 2026 IRS Publication 15-T withholding tables based on your W-4 elections. Key 2026 brackets (single): 10% on income to $11,925; 12% on $11,925–$48,475; 22% on $48,475–$103,350; 24% on $103,350–$197,300. Most New Jersey workers earning $50,000–$150,000 fall predominantly in the 22%–24% marginal brackets.
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Step 4: New Jersey Gross Income Tax
New Jersey applies its own 7-bracket progressive schedule (1.4%–10.75% for 2026) to your NJ taxable income, after subtracting a $1,000-per-exemption personal exemption (New Jersey does not use a standard deduction). Your employer withholds based on your Form NJ-W4 elections. Joint filers use more favorable bracket thresholds than single filers — at $100,000, a single filer owes about $4,244 in NJ tax versus $2,750 for a married couple filing jointly.
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Step 5: New Jersey Payroll Tax — FLI & UI/Workforce Development
New Jersey deducts a small employee-side Family Leave Insurance (FLI) contribution — 0.23% of wages up to the $171,100 wage base for 2026 — plus a small Unemployment Insurance/Workforce Development (UI/WF) contribution on wages up to $44,800. Combined, these typically add up to a few hundred dollars per year for most workers — far smaller than income tax, but a real line item unique to New Jersey (and a few other states with state-run disability/family leave programs). Unlike a pre-tax deduction you elect yourself, FLI and UI/WF are mandatory and apply automatically to every paycheck.
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Step 6: FICA — Social Security + Medicare
Social Security: 6.2% on wages up to $184,500 (2026 SS wage base). Medicare: 1.45% on all wages. Additional Medicare Tax: an extra 0.9% on wages exceeding $200,000 ($250,000 for married filing jointly). FICA applies identically to every New Jersey worker regardless of exemptions claimed.
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Step 7: Post-Tax Deductions — Roth 401(k), Garnishments, Union Dues
Post-tax deductions come out after all tax calculations and do not reduce taxable income. Common examples for New Jersey workers: Roth 401(k) contributions, court-ordered wage garnishments (child support, student loans), and union dues — New Jersey has a substantial union presence in the public sector, healthcare, ports/logistics, and building trades, making union dues a common post-tax deduction. New Jersey law requires written authorization for most voluntary post-tax deductions.
Section 4 — New Jersey Labor Law
New Jersey Payroll Laws — Overtime, Tip Credit & Pay Timing
New Jersey has several state-specific rules that directly affect what shows up on your paycheck, from mandatory FLI/UI-WF deductions to final-pay timing. Here's what actually governs your New Jersey pay stub.
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New Jersey Overtime — Federal Weekly Threshold Only
New Jersey's overtime rule tracks the federal FLSA standard closely:
Hours over 40 in a workweek (defined as any fixed, recurring 7-day period) trigger 1.5× your regular rate — this is New Jersey's only overtime threshold
No daily overtime — a long single shift does not by itself trigger overtime as long as your weekly total stays at or under 40 hours
No state-mandated meal or rest breaks for adult employees — New Jersey, like federal law, leaves break policy to the employer for workers 18 and older (minors have separate mandated break rules)
Salaried "exempt" classification does not automatically excuse an employer from overtime — the employee must actually meet the federal duties test for executive, administrative, or professional employees. Being paid a salary, by itself, does not make you ineligible for overtime.
Common issue: Misclassifying hourly workers as salaried "managers" without genuine managerial duties is one of the most frequently litigated wage disputes in New Jersey, particularly in retail and food service.
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New Jersey Pay Frequency & Final Paycheck Rules (N.J.S.A. 34:11-4.3)
New Jersey's Wage Payment Law requires employers to establish regular paydays and pay at least twice per month (semi-monthly) for most employees, with limited exceptions for certain salaried executive, supervisory, and other special classifications who may be paid monthly.
Final paycheck on termination or resignation: Whether you were fired, laid off, or quit voluntarily, New Jersey requires your employer to pay all wages earned through your last day of work no later than your next regular payday for the pay period in which employment ended. There is no faster mandatory deadline for involuntary terminations — the rule is identical whether you quit or were fired. See our final paycheck rules guide for how this compares elsewhere.
Final pay must include all earned wages, commissions, and any bonuses your employer contractually agreed to pay — even if not yet calculated at separation. New Jersey does not require payout of unused vacation unless your employer's own policy provides it.
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New Jersey Tipped-Wage Rules
New Jersey allows a tip credit under a straightforward, uniform statewide structure:
Employers may pay tipped employees a cash wage as low as $6.05/hr in 2026, using a tip credit of up to $9.87/hr
Cash wage + tips must equal at least the full $15.92/hr minimum wage for every workweek — if they don't, the employer must make up the shortfall
This rate is uniform statewide — unlike New York, New Jersey does not vary its tipped minimum wage by region
Tip pooling among employees is allowed, but managers, supervisors, and owners cannot participate
Employers can reduce a worker's rate of pay going forward with advance notice, but cannot apply a pay cut retroactively or drop pay below the applicable minimum wage
Tip credit: up to $9.87/hr — cash wage $6.05/hrTips + cash must reach $15.92/hrUniform statewide — no regional variance
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New Jersey Paycheck Deduction Rules
Paycheck deductions: New Jersey generally permits only deductions required by law (taxes, garnishments) or expressly authorized in writing by the employee for a specific, lawful purpose. Employers cannot make deductions that push effective pay below minimum wage, and cannot reduce a final paycheck for unreturned company property — that's a separate matter the employer must pursue independently, not deduct from wages owed.
Section 5 — Compare State Tax Burden
New Jersey vs. Other States — Complete Tax Comparison
New Jersey pairs a real, progressive state income tax with the nation's highest property taxes — but uniquely among its neighbors, adds no local income tax layer anywhere in the state. Here's how New Jersey's combined burden compares to nearby states and to states with no income tax at all.
State
Income Tax
Sales Tax
Property Tax (avg)
Overall Worker Burden
Key Trade-off
New Jersey ⭐
1.4%–10.75%
6.625% (uniform)
Very High (2.23% avg)
High
Highest property taxes in the US; no local income tax anywhere
New York
4%–10.9% (+NYC 3.078%–3.876%)
4%–8.875%
Moderate–High
High
NYC residents face a third local tax layer NJ residents never pay
Pennsylvania
3.07% flat (+Philadelphia wage tax)
6.0%–8.0%
Moderate
Moderate
Low flat state rate; true NJ reciprocity available outside Philadelphia
Connecticut
2%–6.99%
6.35%
High
Moderate–High
No local income tax; high property tax in Fairfield County
Florida
0%
6.0%–8.0%
Moderate–High
Low
Zero income tax; rising property insurance and hurricane risk
Texas
0%
6.25%–8.25%
Very High
Moderate
Zero income tax offset by among the highest property taxes in the US
New Jersey's competitive position: New Jersey offers strong access to pharmaceutical, finance, logistics, and professional-services careers, with genuine proximity to both New York City and Philadelphia — but at real cost, led by the nation's highest property taxes. For renters and commuters, New Jersey's lack of any local income tax is a real, durable advantage over New York; for homeowners, the property tax bill often outweighs that advantage entirely. The federal SALT deduction cap increase to $40,000 for 2026 offers meaningful new relief for New Jersey's many high-income-tax, high-property-tax households.
New Jersey belongs to the same local-tax-layered cluster as New York, already shown above, plus California and Maryland — though New Jersey is the outlier of the four, since it never adds a local income tax on top of the state rate anywhere in the state. Workers relocating from Virginia, a standard-bracket state without New Jersey's property tax burden, will see the trade-off most clearly at higher home values.
Section 6 — County-Specific Rules
New Jersey County-by-County Paycheck & Tax Rules
New Jersey's 6.625% sales tax is uniform statewide — no county or municipal add-ons exist anywhere, a genuine rarity among populous states. The real regional variation comes from Urban Enterprise Zones (offering a reduced sales tax rate to stimulate distressed local economies), commuting patterns into New York City or Philadelphia, and property tax burden. Here is what workers in each major New Jersey county need to know.
🌉 Bergen County (Hackensack, Paramus, Fort Lee)
Population: ~955K · Most populous NJ county · NYC commuter suburb, corporate & retail hub
Sales tax: 6.625% — New Jersey's uniform statewide rate, no local add-on.
Income tax: New Jersey Gross Income Tax only — no county or municipal income tax anywhere in Bergen County.
NYC commuting: Bergen County sits directly across the Hudson from Manhattan, and a substantial share of residents commute into NYC for finance, law, and corporate jobs — filing both a New Jersey resident return and a New York nonresident return, with a partial NJ credit for NY State tax paid (see Section 2).
Property tax: Bergen County carries some of the highest property tax bills in the state, consistent with New Jersey's position as the highest-property-tax state in the nation.
Sales tax: 6.625% — New Jersey's uniform statewide rate; Jersey City has several UEZ-certified retailers offering the reduced 3.3125% rate.
Income tax: New Jersey Gross Income Tax only — no local income tax in Jersey City, Hoboken, or anywhere in Hudson County.
Finance & tech wages: Jersey City has become a major secondary finance hub, hosting large back-office and trading operations for major banks, plus a fast-growing tech sector — largely driven by direct PATH train access to Manhattan and meaningfully lower costs than NYC itself.
Port & logistics wages: Hudson County's waterfront and rail access support significant logistics and warehousing employment, paying well above the state's $15.92/hr minimum wage.
Population: ~865K · New Jersey's largest city · Logistics, insurance & airport hub
Sales tax: 6.625% standard rate; Newark is one of New Jersey's 32 Urban Enterprise Zones, where UEZ-certified retailers charge a reduced 3.3125% rate on qualifying in-person purchases.
Income tax: New Jersey Gross Income Tax only — no Newark city income tax, unlike Philadelphia's wage tax or NYC's local resident tax.
Logistics & airport wages: Newark Liberty International Airport and Port Newark-Elizabeth Marine Terminal — one of the busiest port complexes on the East Coast — drive substantial logistics, warehousing, and airport-services employment. Newark also hosts major insurance company headquarters.
UEZ hiring incentives: Newark businesses certified under the UEZ program can access Unemployment Insurance tax offsets and Corporation Business Tax credits for hiring — indirectly supporting local job growth, though these are employer-side benefits, not something that changes an individual worker's paycheck.
UEZ rate: 3.3125% (certified retailers)Port & airport logistics hubNo local income tax
🌉 Camden County (Camden, Cherry Hill)
Population: ~527K · Directly across the Delaware from Philadelphia · Healthcare & pharmaceutical hub
Sales tax: 6.625% standard rate; Camden is a designated Urban Enterprise Zone, with certified retailers charging the reduced 3.3125% rate.
Income tax: New Jersey Gross Income Tax only. Camden County residents who commute to work in Philadelphia benefit from true NJ/PA tax reciprocity — no Pennsylvania state income tax withheld on those wages (Philadelphia's separate city wage tax still applies, with an NJ credit available).
Healthcare & pharma wages: Camden's economy has been reshaped by major healthcare system investment and biotech/pharmaceutical employment, alongside continued distribution and logistics activity tied to the Philadelphia metro.
Cross-river commuting: Cherry Hill and other Camden County suburbs house many workers who commute daily into Philadelphia via the PATCO high-speed line, making the NJ/PA reciprocity agreement directly relevant to a large share of the local workforce.
UEZ rate: 3.3125% (certified retailers)True PA reciprocity for commutersHealthcare & pharma hub
Remote workers — important note: If you live in New Jersey and work remotely for an employer based in New York, be aware that New York's aggressive "convenience of the employer" rule can still treat your wages as New York-source income for tax purposes, even though you never set foot in the state — unless your home office meets specific "bona fide employer office" criteria. This is a New York rule, not a New Jersey one, but it directly affects many New Jersey residents working remotely for New York-based employers. Consult a tax professional if this applies to you.
📋 Section 7 — New Jersey Paycheck Accuracy Checklist
Does Your New Jersey Paycheck Add Up?
New Jersey has detailed wage-and-hour rules on top of its FLI/UI-WF payroll deductions. Here are the most common items to check on a New Jersey paycheck:
✓Exempt classification requires meeting the federal duties test, not just a salaried title
✓Overtime paid at 1.5× for hours over 40 in a workweek
✓Tip credit: employer pays the $6.05/hr tipped cash wage, and tips must bring total pay to at least $15.92/hr
✓Final paycheck due on the next regular payday after termination or resignation
✓Deductions beyond New Jersey's specific permitted categories generally require your written consent
If your paycheck doesn't match what you expect, compare it against our pay stub guide first. For unresolved pay disputes, file a complaint with the New Jersey Department of Labor and Workforce Development.
Section 8 — Frequently Asked Questions
New Jersey Paycheck Calculator — FAQ
Answers to the most-searched questions about New Jersey take-home pay, state income tax brackets, commuter tax rules for New York and Pennsylvania, overtime, and wage claims — verified against the New Jersey Gross Income Tax Act, New Jersey Wage Payment Law, IRS 2026 guidance, and New Jersey Department of Labor and Workforce Development publications.
Take-Home Pay Guide
How Much Is Taken Out of My Paycheck in New Jersey?
New Jersey workers see four separate deductions on every paycheck: federal income tax, New Jersey Gross Income Tax, a small state payroll tax (FLI/UI-WF), and FICA — but no local income tax, no matter where in the state you live. For a Newark-area worker earning $60,000/year (bi-weekly, single filer, 1 exemption), expect roughly $193 in federal tax, $68 in NJ state tax, $6 in NJ payroll tax, and $177 in FICA — leaving approximately $1,864 per paycheck. See your own figures using the take-home pay calculator.
Worked Example
🌉 New Jersey: Real Paycheck Breakdown 2026
Single filer, 1 exemption · No local income tax anywhere in NJ · Bi-weekly pay (26 paychecks/year)
Annual Salary
$60,000per year
Take-Home (Bi-weekly)
$1,864
Gross (bi-weekly)
$2,307.69
— Federal Income Tax
-$193
— New Jersey State Tax
-$68
— NJ Payroll Tax (FLI/UI-WF)
-$6
— Social Security + Medicare
-$177
Net Take-Home Pay
$1,864
Key insight: A married couple filing jointly at the same $60,000 combined income owes noticeably less New Jersey tax than a single filer, since New Jersey's joint-filer brackets use higher thresholds at every bracket level — one of the more taxpayer-friendly aspects of an otherwise real, progressive state tax system.
Salary Calculator
New Jersey Salary Calculator — Take-Home Pay With State Tax
Converting a New Jersey annual salary to net take-home requires accounting for federal tax, New Jersey's 7-bracket progressive schedule, a small FLI/UI-WF payroll deduction, and FICA — but never a local income tax layer, regardless of city or county. At $75,000/year, total deductions run approximately 25%–28% of gross for a single filer. High earners face New Jersey's top 10.75% bracket above $1 million in taxable income — one of the higher top marginal state rates in the country, though it applies to a very small share of filers.
New Jersey Gross Income Tax uses 7 progressive brackets for 2026, ranging from 1.4% on the lowest income to 10.75% on income over $1 million. A single filer with $100,000 of NJ taxable income owes approximately $4,244 in state tax alone.
A married couple filing jointly at the same $100,000 combined income owes only about $2,750, since New Jersey's joint-filer brackets use higher thresholds at every level — a real, built-in reduction of the "marriage penalty" seen in some other states' tax codes. New Jersey's brackets are fixed in statute and do not automatically adjust for inflation the way federal brackets do.
New Jersey and New York do not have a reciprocal tax agreement, so you must file both a New York nonresident return (Form IT-203) and a New Jersey resident return (NJ-1040). New Jersey gives you a credit for New York State tax paid, via Schedule NJ-COJ.
That credit does not cover NYC's separate local resident tax — but you don't owe that tax anyway, since it applies only to New York City residents, not commuters. Nearly 400,000 people make this daily commute, and understanding this two-return requirement avoids a common tax-season surprise.
No — thanks to a genuine reciprocal agreement between New Jersey and Pennsylvania. File Form REV-419 with your Pennsylvania employer, and only New Jersey income tax applies to your wages. Zero Pennsylvania state tax gets withheld — a real, meaningful difference from the New York commuting situation above.
One exception: this reciprocity does not extend to the City of Philadelphia's separate wage tax, which New Jersey residents working in Philadelphia still owe. A New Jersey credit is available for Philadelphia wage tax paid, similar to how the NY commuter credit works.
New Jersey's minimum wage for 2026 is $15.92 per hour, uniform statewide — the same rate whether you work in Newark or a small rural township. Smaller employers with fewer than 6 employees, and seasonal employers, pay a slightly lower $15.23/hr.
New Jersey reached its $15/hr target ahead of many other states under a scheduled increase path, with subsequent annual increases now tied to inflation. Tipped workers may be paid a lower cash wage plus tip credit, provided total pay reaches the full minimum wage.
Under New Jersey's Wage Payment Law (N.J.S.A. 34:11-4.3), your employer must pay all wages earned through your last day of work no later than your next regular payday — whether you were fired, laid off, or quit voluntarily. There is no faster mandatory deadline under New Jersey law.
File a complaint with the New Jersey Department of Labor and Workforce Development if your final paycheck is late or short.
New Jersey's sales tax is a uniform 6.625% statewide, with no county or municipal add-ons anywhere — a genuine rarity among populous states, and a sharp contrast with neighbors like New York, where rates vary widely by locality.
New Jersey does offer a reduced 3.3125% rate at certified retailers within 32 Urban Enterprise Zones, including parts of Newark, Jersey City, Camden, Trenton, Paterson, and Elizabeth — designed to stimulate economically distressed areas. Clothing and footwear are fully exempt from New Jersey sales tax regardless of price, a broader exemption than most states offer.
Yes — New Jersey deducts a small employee-side Family Leave Insurance (FLI) contribution, 0.23% of wages up to the 2026 wage base of $171,100, plus a small Unemployment Insurance/Workforce Development (UI/WF) contribution on wages up to $44,800.
Combined, these typically total a few hundred dollars per year for most workers — far smaller than income tax, but a real, New Jersey-specific line item most other states don't have. Unlike New York's MCTMT, which is employer-side only, New Jersey's FLI and UI/WF genuinely come out of employee paychecks.