New Jersey State Income Tax Withholding 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.

Additional Resources:

TAXES 10-09, New Jersey State Income Tax Withholding

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.