New Jersey Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against NJ Department of Labor's own pages and the other official sources below
New Jersey employers pay state unemployment tax (SUTA) on the first $44,800 of each employee's wages in 2026, and new employers pay 2.8% — at most $1,254.40 per employee for the year. Employees also pay 0.425% on the first $44,800, which you withhold. New Jersey Temporary Disability Insurance (employer) can add to the employer's cost in 2026, depending on headcount (details below). Every New Jersey employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in New Jersey?
Enter your headcount and average pay to see the employer's share of New Jersey and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
New Jersey employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
New Jersey unemployment (SUTA) 2.8% × first $44,800 per employee | $6,272 |
Federal unemployment (FUTA) 0.6% × first $7,000 after the full state credit | $210 |
Social Security (employer half) 6.2% × first $184,500 | $15,500 |
Medicare (employer half) 1.45% of all wages | $3,625 |
New Jersey Temporary Disability Insurance (employer) 0.5% employer share — New-employer TDI rate 0.5% | $1,120 |
| Total employer taxes | $26,727 |
| Per employee | $5,345 |
Assumes every employee earns the average and works in New Jersey all year. Local payroll taxes (below) depend on where the work is done and are not included. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
New Jersey unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $44,800 per employee (9th highest of 51)
- New-employer rate
- 2.8%
- How the new-employer rate works
- 2.6825% UI + 0.1175% Workforce Development/Supplemental Workforce Funds (July 2025–June 2027). Employer TDI (0.5%) is shown separately.
- Most a new employer pays per employee
- $1,254.40 (2.8% × $44,800)
- Experience-rated range (2026, as published)
- 0.5% to 5.8%
- 2025 average employer rate
- 1.93% of taxable wages (U.S. DOL)
- Employee contribution
- 0.425% of the first $44,800 — withheld from pay
- Agency
- NJ Department of Labor
Register with NJ Department of Labor when you first pay wages in New Jersey; you get an account number for quarterly wage reports and tax payments.
Paid leave, disability and other New Jersey payroll programs
- New Jersey Temporary Disability Insurance (employer) · wages up to $44,800New-employer TDI rate 0.5%New employers pay 0.5% TDI on the first $44,800 (FY July 2025–June 2027); after three years the TDI rate is experience-rated. Workers separately pay TDI 0.19% and FLI 0.23% on up to $171,100 in 2026.
- TDI (worker) · employee-paid, withheld by you0.19% of wages up to $171,100
- Family Leave Insurance · employee-paid, withheld by you0.23% of wages up to $171,100
Local payroll taxes in New Jersey
Federal payroll taxes every New Jersey employer pays
- Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
- FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for New Jersey unemployment tax paid on time = 0.6%, or $42 per employee.
- Federal income tax withholding from each paycheck based on the employee's Form W-4.
- 2027 NJ taxable wage base: $46,400 (UI, WF/SWF, employer TDI) and $177,100 (worker TDI/FLI).
Next for New Jersey employers: New Jersey paycheck calculator (employee withholding) · New Jersey new hire reporting · New Jersey payday & final paycheck rules · New Jersey workers' comp · full payroll cost calculator
New Jersey payroll tax FAQ
What is the New Jersey SUTA rate for new employers in 2026?
2.8%. 2.6825% UI + 0.1175% Workforce Development/Supplemental Workforce Funds (July 2025–June 2027). Employer TDI (0.5%) is shown separately.
What is the New Jersey SUTA wage base for 2026?
$44,800 per employee. Once an employee's 2026 wages pass that amount, you stop paying New Jersey unemployment tax on them for the rest of the year. That is the 9th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in New Jersey?
Yes. New Jersey is one of three states (with Alaska, New Jersey and Pennsylvania) where employees contribute: 0.425% of the first $44,800 in 2026, withheld by the employer.
What other payroll taxes do New Jersey employers pay?
Besides unemployment tax: New Jersey Temporary Disability Insurance (employer): New employers pay 0.5% TDI on the first $44,800 (FY July 2025–June 2027); after three years the TDI rate is experience-rated. Workers separately pay TDI 0.19% and FLI 0.23% on up to $171,100 in 2026. TDI (worker) (employee-paid): 0.19% of wages up to $171,100 Family Leave Insurance (employee-paid): 0.23% of wages up to $171,100 Some local payroll taxes also apply: Newark payroll tax and Jersey City payroll tax.
How much FUTA do New Jersey employers pay?
0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying New Jersey unemployment tax on time. New Jersey is not a credit-reduction state for 2026.
How does my New Jersey SUTA rate change after the first years?
New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, NJ Department of Labor assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.5% to 5.8%. Use the rate on your annual rate notice. The 2025 average employer rate in New Jersey was 1.93% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12- NJ Labor — rate information — UI wage base and rates
- City of Newark — payroll tax — Newark payroll tax
- Jersey City — payroll tax FAQ — Jersey City payroll tax
- IRS Publication 15 (2026), Employer's Tax Guide
- IRS Topic 759, Form 940 — FUTA
- U.S. DOL ETA — Employer contribution rates, CY 2025
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General information, not tax advice. Rates change every year; confirm yours on the notice from NJ Department of Labor before filing.