New Jersey State Income Tax Withholding
Reference Number: NFC211615324548
Published: March 9, 2021
Effective: Pay Period 05, 2021
Summary
The tax rate on wages over $1,000,000 and up to $5,000,000 for the State of New Jersey has changed from 21.3 percent to 11.8 percent for all tax tables.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: 
NJ 
State Tax Withholding State Code: 
34 
Acceptable Exemption Form: 
NJ W4 or W4 (see the Additional Information section) 
Basis for Withholding: 
State or Federal Exemptions (see the Additional Information section) 
Acceptable Exemption Data: 
MS/MJ/HH, for 2020 Federal Form W2 
TSP Deferred: 
No 
Non Federal 401(k) Deferred: 
Yes 
Additional Information: 
Employees who have not previously submitted a NJ W4 and have submitted a 2020, or later, Federal Form W4 will default to zero (00) allowances. Employees who have not previously submitted a NJ W4 and have not submitted a 2020, or later, Federal Form W4 will default to the prior to 2020 Federal Form W4 submission. 
Special Coding:
 Determine the Total Number of Allowances Claimed as follows:
If Item 3 of the NJ W4 Contains: 
Enter: 

A 

B 

C 

D 

E 

If Item 3 of the NJW4 Is Blank and If the Status on Line 2 Is: 
Enter: 

Single 

Married/Civil Union Couple Joint 

Married/Civil Union Couple Separate 

Head of Household 

Surviving Spouse/Surviving Civil Union Partner 

 Enter the total number of exemptions claimed in Item 4 of the NJW4. If less than 10, precede with a zero (0).
Withholding Formula (Effective Pay Period 05, 2021)
 Subtract the nontaxable biweekly nonFederal 401(k) contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages.
 Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
 Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income:
Exemption Allowance = $1,000 x Number of Exemptions
 Apply the taxable income computed in step 3 to the following table(s) to determine the annual New Jersey tax withholding:
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 $0 but not over $20,000
1.5%
Over $20,000 but not over $35,000
$300.00 plus 2.0% of excess over $20,000
Over $35,000 but not over $40,000
$600.00 plus 3.9% of excess over $35,000
Over $40,000 but not over $75,000
$795.00 plus 6.1% of excess over $40,000
Over $75,000 but not over $500,000
$2,930.00 plus 7.0% of excess over $75,000
Over $500,000 but not over $1,000,000
$32,680.00 plus 9.9% of excess over $500,000
Over $1,000,000
$82,180.00 plus 11.8% of excess over $1,000,000
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 $0 but not over $20,000
1.5%
Over $20,000 but not over $50,000
$300.00 plus 2.0% of excess over $20,000
Over $50,000 but not over $70,000
$900.00 plus 2.7% of excess over $50,000
Over $70,000 but not over $80,000
$1,440.00 plus 3.9% of excess over $70,000
Over $80,000 but not over $150,000
$1,830.00 plus 6.1% of excess over $80,000
Over $150,000 but not over $500,000
$6,100.00 plus 7.0% of excess over $150,000
Over $500,000 but not over $1,000,000
$30,600.00 plus 9.9% of excess over $500,000
Over $1,000,000
$80,100.00 plus 11.8% of excess over $1,000,000
Optional Rate Table C
If the Amount of Taxable Income Is:
The Amount of New Jersey Tax Withholding Should Be:
Over $0 but not over $20,000
1.5%
Over $20,000 but not over $40,000
$300.00 plus 2.3% of excess over $20,000
Over $40,000 but not over $50,000
$760.00 plus 2.8% of excess over $40,000
Over $50,000 but not over $60,000
$1,040.00 plus 3.5% of excess over $50,000
Over $60,000 but not over $150,000
$1,390.00 plus 5.6% of excess over $60,000
Over $150,000 but not over $500,000
$6,430.00 plus 6.6% of excess over $150,000
Over $500,000 but not over $1,000,000
$29,530.00 plus 9.9% of excess over $500,000
Over $1,000,000
$79,030.00 plus 11.8% of excess over $1,000,000
Optional Rate Table D
If the Amount of Taxable Income Is:
The Amount of New Jersey Tax Withholding Should Be:
Over $0 but not over $20,000
1.5%
Over $20,000 but not over $40,000
$300.00 plus 2.7% of excess over $20,000
Over $40,000 but not over $50,000
$840.00 plus 3.4% of excess over $40,000
Over $50,000 but not over $60,000
$1,180.00 plus 4.3% of excess over $50,000
Over $60,000 but not over $150,000
$1,610.00 plus 5.6% of excess over $60,000
Over $150,000 but not over $500,000
$6,650.00 plus 6.5% of excess over $150,000
Over $500,000 but not over $1,000,000
$29,400.00 plus 9.9% of excess over $500,000
Over $1,000,000
$78,900.00 plus 11.8% of excess over $1,000,000
Optional Rate Table E
If the Amount of Taxable Income Is:
The Amount of New Jersey Tax Withholding Should Be:
Over $0 but not over $20,000
1.5%
Over $20,000 but not over $35,000
$300.00 plus 2.0% of excess over $20,000
Over $35,000 but not over $100,000
$600.00 plus 5.8% of excess over $35,000
Over $100,000 but not over $500,000
$4,370.00 plus 6.5% of excess over $100,000
Over $500,000 but not over $1,000,000
$30,370.00 plus 9.9% of excess over $500,000
Over $1,000,000
$79,870.00 plus 11.8% of excess over $1,000,000
 Divide the annual New Jersey tax withholding calculated in step 4 by the number of pay dates in the tax year to obtain the biweekly New Jersey tax withholding.
Resources
To view the updated tax formula, go to the
page from the dropdown menu on the National Finance Center (NFC) Home page. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.Inquiries
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