New Jersey Payroll Tax Calculator 2026

Employers in New Jersey are subject to four main payroll taxes: Social Security (6.2% on wages up to $176,100 in 2025), Medicare (1.45% on all wages), FUTA (effectively 0.6% on the first $7,000 per employee after the standard state credit), and New Jersey SUTA (State Unemployment Tax).

New Jersey has a SUTA wage base of $42,300 for 2025. This means employers pay SUTA tax on the first $42,300 of each employee's annual wages. The average new employer rate is approximately 3.5%, though your actual rate depends on your experience rating (claims history).

New Jersey's SUTA wage base of $42,300 is significantly higher than the federal minimum of $7,000, which means employers pay SUTA on a larger portion of each employee's wages. While the tax rate may be lower, the higher wage base can result in meaningful SUTA costs per employee.

Remember that employees also pay their share of FICA taxes (6.2% Social Security and 1.45% Medicare) which you withhold from their wages. The payroll tax calculator above focuses on the employer-side costs, which are an additional expense on top of the wages you pay.

As an employer in New Jersey, you are also required to withhold state income tax from employee wages. New Jersey has progressive income tax brackets. State income tax withholding is the employee's obligation, not an additional employer cost, but you must calculate and remit it correctly.