How New Jersey taxes bonuses
New Jersey has no flat rate for bonuses. Employers add the bonus to a regular paycheck and withhold New Jersey tax with the normal tables, so the state amount depends on your regular pay. New Jersey has no flat bonus rate. It uses the regular withholding tables.
Federal withholding is the same in every state. Most employers take a flat 22% of the bonus (37% on supplemental pay over $1,000,000 in a year). Social Security takes 6.2% up to the yearly wage base and Medicare 1.45%. If your employer adds the bonus to a regular $2,500 paycheck instead, the aggregate method withholds about $1,150.54 of federal tax on a $5,000 bonus, against $1,100.00 with the flat rate.
New Jersey also takes NJ disability insurance and NJ family leave insurance and NJ unemployment insurance and NJ workforce fund from a bonus, the same as from any wages: $9.50 and $11.50 and $19.13 and $2.13 on $5,000.
Take-home pay on a bonus in New Jersey
What is withheld from bonuses of different sizes, with the federal flat rate, for a single filer who has not yet reached the Social Security wage base this year.
| Bonus | Federal income tax | Social Security and Medicare | New Jersey taxes | Take-home bonus | You keep |
|---|---|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $74.64 | $628.86 | 62.9% |
| $2,500 | $550.00 | $191.25 | $192.32 | $1,566.43 | 62.7% |
| $5,000 | $1,100.00 | $382.50 | $388.44 | $3,129.06 | 62.6% |
| $10,000 | $2,200.00 | $765.00 | $780.69 | $6,254.31 | 62.5% |
| $25,000 | $5,500.00 | $1,912.50 | $2,196.13 | $15,391.37 | 61.6% |
| $50,000 | $11,000.00 | $3,825.00 | $5,126.28 | $30,048.72 | 60.1% |
Why New Jersey bonus withholding depends on your pay
Because New Jersey runs a bonus through its regular withholding tables, the same $5,000 bonus can have more state tax taken out when your regular paycheck is bigger. Biweekly pay, single filer:
| Regular paycheck | New Jersey tax on a $5,000 bonus | Share of the bonus |
|---|---|---|
| $1,500 ($39,000 a year) | $335.50 | 6.71% |
| $2,500 ($65,000 a year) | $346.19 | 6.92% |
| $4,000 ($104,000 a year) | $350.00 | 7% |
| $6,000 ($156,000 a year) | $350.00 | 7% |
New Jersey bonus taxes compared with nearby states
The same $5,000 bonus, flat federal rate, in each state that borders New Jersey. Of these, Pennsylvania leaves the most of the bonus in your pocket.
| State | State bonus withholding | State taxes on the bonus | Take-home bonus |
|---|---|---|---|
| New Jersey | Regular tables | $388.44 | $3,129.06 |
| Delaware bonus tax calculator | Regular tables | $350.00 | $3,167.50 |
| New York bonus tax calculator | 11.7% flat | $606.60 | $2,910.90 |
| Pennsylvania bonus tax calculator | 3.07% flat | $157.00 | $3,360.50 |
More New Jersey pay calculators
For your regular take-home pay, use the New Jersey paycheck calculator. To see a bonus next to your regular paycheck, try the bonus paycheck calculator. Employers paying a bonus can use the bonus payroll calculator or the New Jersey payroll calculator. The bonus tax calculator page compares every state.
Sources
Federal figures follow IRS Publication 15. New Jersey bonus withholding comes from the state's own guidance: nj.gov. See how we calculate for the withholding method.