Overview
New Jersey has a progressive income tax system with some of the most filing status options of any state. The state also has mandatory employee contributions for State Disability Insurance (SDI) and Family Leave Insurance (FLI), plus a workforce development surcharge.
State Income Tax (SIT)
New Jersey’s progressive income tax features multiple brackets. Employees complete Form NJ-W4 with a broad range of filing status options. The state also requires employee contributions to SDI and FLI programs. New Jersey is one of the few states with both disability and family leave insurance programs funded through employee payroll deductions.
| Tax Structure | Progressive with multiple brackets |
| State Withholding Form | Form NJ-W4 |
| Filing Statuses | S, M/S, M/R, C, H, W |
| SDI | Employee-paid State Disability Insurance |
| FLI | Employee-paid Family Leave Insurance |
| SUTA Rate | 2.8% default for new employers |
Supplemental Wages
New Jersey supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method.
Employer State Unemployment Tax (SUTA)
Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.8%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 2.8% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
State Disability Insurance (SDI): New Jersey requires contributions to a disability insurance program. This provides short-term benefit payments to eligible workers who suffer a loss of wages due to non-work-related illness, injury, or pregnancy. Check with the state for current rates and wage base limits.
Paid Family Leave Insurance: New Jersey has a paid family leave program that provides wage replacement benefits for qualifying family and medical events. Both employers and employees may be required to contribute, depending on the program’s structure.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to:
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