New Jersey income tax — no standard deduction but low starting rates
New Jersey has progressive income tax from 1.4% to 10.75% with no state standard deduction — tax applies from your very first dollar of income. However, NJ's starting brackets are very low. A worker earning $75,000 falls in the 5.525%–6.37% bracket range, with an effective rate of approximately 5.45%.
A worker earning $75,000/year in New Jersey pays approximately $4,091 in state income tax annually. Take-home is approximately $54,100 per year — better than New York City residents but less than no-tax states like Florida or Texas.
Living in NJ and working in NYC — tax explained
Many people live in New Jersey and commute to New York City to save on taxes. NYC residents pay an additional 3.078%–3.876% NYC local income tax on top of NY state tax. NJ residents who work in NYC pay NY state income tax on their NYC wages but do not pay NYC local tax — saving $2,000–$3,500/year.
New Jersey also provides a credit for taxes paid to other states, preventing double taxation. However, you must file both an NJ return and an NY non-resident return if you work in NYC while living in NJ. The net result is you typically pay whichever state's tax is higher on your work income.
New Jersey SDI and FLI — additional payroll deductions
New Jersey also has SDI (State Disability Insurance) at 0.14% and FLI (Family Leave Insurance) at 0.09% on wages up to $161,400 (2026). These are additional deductions beyond state income tax. On a $75,000 salary, combined SDI + FLI = approximately $173/year ($6.65 per biweekly paycheck).
These programs provide short-term disability benefits (up to 85% of wages, max $1,099/week) and family leave benefits (up to 85% of wages). NJ has among the most generous paid leave programs in the US.