New Jersey paychecks in 2026: what changed
New Jersey's withholding tables didn't change for 2026, but the insurance rates, wage limits and minimum wage did.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- TDI: 0.19% (down from 0.23%), and FLI: 0.23% (down from 0.33%), on wages up to $171,100 (up from $165,400).
- Unemployment and workforce funds: still 0.425%, on wages up to $44,800 (up from $43,300).
- Minimum wage: $15.92 from January 1, 2026 (up from $15.49); tipped cash wage $6.05 (up from $5.62).
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Work out your 2026 New Jersey paycheck →
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- N.J. Division of Taxation — New Jersey Withholding Rate Tables (percentage method, paid on and after October 1, 2020) — Rate A–E annual and per-period tables; 1.5% to 11.8%
- N.J. Division of Taxation — NJ-WT, New Jersey Income Tax Withholding Instructions (rev. September 2025) — Rate A for Single / Married Separate, Rate B otherwise; allowance $1,000 a year; 401(k) excluded up to the federal limit; cafeteria-plan amounts taxable
- N.J. Division of Taxation — Form NJ-W4 (1-21) — filing status, rate table letter (wage chart), allowances
- N.J. Division of Taxation — TB-39(R), Cafeteria Plans — salary-reduction cafeteria plans (premium conversion, FSAs) are not excluded from New Jersey wages
- N.J. Department of Labor — Rate information, contributions and due dates — 2026 worker rates: UI 0.3825%, WF/SWF 0.0425% on $44,800; TDI 0.19%, FLI 0.23% on $171,100
- N.J. Department of Labor — Division of Temporary Disability and Family Leave Insurance: information for employers — 2026: TDI 0.19% (max $325.09), FLI 0.23% (max $393.53) on the first $171,100
- N.J. Department of Labor — New benefit rates for 2026 — wage bases $44,800 (UI) and $171,100 (TDI/FLI) for 2026
- N.J. Department of Labor — Employer handbook: taxes and wage reporting — 401(k) and cafeteria-plan amounts are wages for contributions
- N.J. Department of Labor — Minimum wage to increase to $15.92/hour on Jan. 1 (2026) — $15.92 most employees (up $0.43); $15.23 seasonal and small employers; $14.20 farm; $6.05 tipped cash wage, $9.87 max tip credit
- N.J. Department of Labor — Wage and hour FAQs for workers — overtime after 40 hours in a week; paid at least twice a month; final pay on the regular payday for the period; six-year limit on wage claims; $6.05 tipped cash wage
- N.J. Department of Labor — Employers' guide to minimum wage and overtime (MW-91, 1/26) — $15.92; time-and-a-half over 40 hours a week; paid at least twice a month