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New Jersey State Income Tax Information

State Abbreviation: NJ
State Tax Withholding State Code: 34
Acceptable Exemption Form: NJ-W4
Basis For Withholding: State or Federal Exemptions
Acceptable Exemption Data: S, M, C, D, E /Number of Exemptions
TSP Deferred: No
Non-Federal 401(k) Deferred: Yes
Special Coding: Determine the Total Number Of Allowances Claimed field as follows:
  First Position -
If Item 3 of the NJ-W4 Contains: Enter:
A S
B M
C C
D D
E E
If Item 3 of the NJ-W4 is Blank
and if the Status on Line 2 Is:
Enter:
Single S
Married/Civil Union
Couple Joint
M
Married /Civil Union
Couple Separate
S
Head of Household M
Surviving Spouse/Surviving
Civil Union Partner
M
Second and Third Positions - Enter the total number of exemptions claimed in Item 4 of the NJ-W4. If less than 10, precede with a zero.
Additional Information: If a state income tax certificate has not been processed or if a valid state exemption code is not present, the Federal exemptions will be used in the computation of state tax.
Withholding Formula Left Arrow(Effective Pay Period 4, 2010)Right Arrow

  1. Subtract the nontaxable biweekly non-Federal 401(k) contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages. Note: Do not subtract the biweekly Federal Thrift Savings Plan contribution.

  2. Multiply the adjusted gross biweekly wages computed in step 1 by 26 to obtain the annual wages.

  3. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
Exemption Allowance = $1,000 x Number of Exemptions
  1. Apply the taxable income computed in step 3 to the following table to determine the annual New Jersey tax withholding.
Tax Withholding Table
Single or Married/Civil Union Couple- Filing Separately
(Rate Table A)
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over: But Not Over:   Of Excess Over:
$0 $20,000 $0 plus 1.5% $0
20,000 35,000 300 plus 2.0% 20,000
35,000 40,000 600 plus 3.9% 35,000
40,000 75,000 795 plus 6.1% 40,000
75,000 Left Arrow500,000 2,930 plus 7.0% 75,000
500,000 and over 32,680 plus 9.9% 500,000Right Arrow

Married/Civil Union Couple - Filing Jointly or Head of Household
or
Surviving Spouse/Surviving Civil Union Partner
(Rate Table B)
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over: But Not Over:   Of Excess Over:
$0 $20,000 $0 plus 1.5% $0
20,000 50,000 300 plus 2.0% 20,000
50,000 70,000 900 plus 2.7% 50,000
70,000 80,000 1,440 plus 3.9% 70,000
80,000 150,000 1,830 plus 6.1% 80,000
150,000 Left Arrow500,000 6,100 plus 7.0% 150,000
500,000 and over 30,600 plus 9.9% 500,000Right Arrow

Optional Rate Table C
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over: But Not Over:   Of Excess Over:
$0 $20,000 $0 plus 1.5% $0
20,000 40,000 300 plus 2.3% 20,000
40,000 50,000 760 plus 2.8% 40,000
50,000 60,000 1,040 plus 3.5% 50,000
60,000 150,000 1,390 plus 5.6% 60,000
150,000 Left Arrow500,000 6,430 plus 6.6% 150,000
500,000 and over 29,530 plus 9.9% 500,000Right Arrow

Optional Rate Table D
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over: But Not Over:   Of Excess Over:
$0 $20,000 $0 plus 1.5% $0
20,000 40,000 300 plus 2.7% 20,000
40,000 50,000 840 plus 3.4% 40,000
50,000 60,000 1,180 plus 4.3% 50,000
60,000 150,000 1,610 plus 5.6% 60,000
150,000 Left Arrow500,000 6,650 plus 6.5% 150,000
500,000 and over 29,400 plus 9.9% 500,000Right Arrow

Optional Rate Table E
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over: But Not Over:   Of Excess Over:
$0 $20,000 $0 plus 1.5% $0
20,000 35,000 300 plus 2.0% 20,000
35,000 100,000 600 plus 5.8% 35,000
100,000 Left Arrow500,000 4,370 plus 6.5% 100,000
500,000 and over 30,370 plus 9.9% 500,000Right Arrow
  1. Divide the annual New Jersey tax withholding by 26 to obtain the biweekly New Jersey tax withholding.
Last Updated / Reviewed: 04-Feb-2014 1:57 PM