New Jersey uses graduated (progressive) state income tax brackets in 2026, so the rate rises with income much like the federal system. This calculator applies an estimated effective rate of about 5.5% for a middle income — on a $75,000 salary a single filer pays roughly $4,125 in state tax and nets about $57,468 a year (76.6% of gross). Your exact rate depends on where your income lands across the brackets.

Because New Jersey is a graduated-rate state, your top marginal rate is higher than your effective rate — you only pay the top rate on income above each threshold, not on your whole salary. Use the interactive calculator below and adjust the state-rate field to match your income for a precise figure. The 5.5% estimate here is above the 4.8% average across taxing states.

Remember that FICA is separate from income tax and is not affected by your state. Every worker pays 6.2% for Social Security on the first $184,500 of wages (the 2026 wage base) plus 1.45% for Medicare on all wages. Pre-tax 401(k) and HSA contributions lower your federal and state income tax but do not reduce FICA — a detail that trips up a lot of first-time budgeters.

New Jersey's graduated schedule tops out among the highest rates in the country for income over $1 million, but pay stubs also carry a stack of smaller state deductions most states don't have: employee contributions to unemployment insurance, temporary disability, and family leave insurance. Add the nation's highest property taxes and the calculus for commuters versus staying in New York City gets complicated — run both scenarios before assuming Jersey wins.