2025 New Jersey Payroll Tax Rates

Abacus Payroll presents a summary of all the payroll tax changes that New Jersey employers or business owners need to know for the 2025 calendar year.

New Jersey Minimum Wage

The effective rate per hour for 2025 is $15.49 (effective 01/01/2025). 

New Jersey Gross Income Tax

The withholding tax rates for 2025 reflect graduated rates from 1.5% to 11.8%. The 11.8% tax rate applies to individuals with taxable income over $1,000,000.

New Jersey Unemployment Tax

The wage base is computed separately for employers and employees. For employers for 2025, the wage base increases to $43,300 for unemployment insurance, disability insurance and workforce development. Employee’s unemployment and workforce development wage base increase to $43,300, maximum withholding $184.03. However, employee’s disability insurance and family leave wage base increases to $165,400, maximum withholding $926.24. The base week for 2025 will increase to $303.

New Jersey Paid Sick Leave

New Jersey’s earned sick leave affects almost every NJ employer. Law states for every 30 hours worked, 1 hour of sick time is earned up to a maximum of 40 hours per year. Please contact us for the specifics regarding this law.

New Jersey Electronic Funds Transfer Program (EFT)

New Jersey taxpayers with a prior year tax liability of $10,000 or more are required to make tax payments by EFT. Once the taxpayer is required to make EFT deposits applying the threshold, all future payroll and business tax deposits must be made through EFT, regardless if the threshold is met each year after. Business taxpayers required to use EFT, and failing to do so, may be subject to severe penalties. Please contact us if you have questions or need assistance completing applications.

New Jersey Filing of Form W-2 and 1099

Form NJ-W-3 and all W-2, W-2-G, 1099s, and 1094/1095s must be submitted electronically.

Download our full Payroll Tax Alert PDF or click here for Federal Wage & Tax Rates.