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How to Calculate New Jersey State Income Tax Withholdings Automatically

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Withholding Formula >(New Jersey Effective 2020)<

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

4. 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	>500,000<	2,930	plus	7.0%	75,000
>500,000	5,000,000	32,680	plus	9.9%	500,000<
>5,000,000	and over	478,180	plus	15.6%	5,000,000<




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:	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	>500,000<	6,100	plus	7.0%	150,000
>500,000	5,000,000	30,600	plus	9.9%	500,000<
>5,000,000	and over	476,100	plus	15.6%	5,000,000<




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	>500,000<	6,430	plus	6.6%	150,000
>500,000	5,000,000	29,530	plus	9.9%	500,000<
>5,000,000	and over	475,030	plus	15.6%	5,000,000<




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	>500,000<	6,650	plus	6.5%	150,000
> 500,000	5,000,000	29,400	plus	9.9%	500,000<
>5,000,000	and over	474,900	plus	15.6%	5,000,000<




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	>500,000<	4,370	plus	6.5%	100,000
>500,000	5,000,000	30,370	plus	9.9%	500,000<
>5,000,000	and over	475,870	plus	15.6%	5,000,000<



5. Divide the annual New Jersey tax withholding by 26 to obtain the biweekly New Jersey tax withholding.