Does Newark, NJ have a city income tax?

No. Newark has no city income tax. Newark residents pay only New Jersey state income tax (1.4%–10.75% progressive brackets), NJ payroll taxes (SDI, FLI, WF/SWF), federal income tax, and FICA. This is a significant advantage over living in New York City, where residents pay both NY state tax and NYC city tax (3.078%–3.876%).

How much do Newark residents save compared to NYC residents?

On an $80,000 salary (single), a Newark resident takes home approximately $61,431 per year, while a NYC resident takes home approximately $58,354. That is a savings of roughly $3,077 per year by living in Newark instead of NYC. Both locations offer a similar commute to Midtown Manhattan via the PATH train (~25 minutes from Newark Penn Station to World Trade Center).

What taxes are deducted from a Newark paycheck?

A Newark paycheck has the following deductions: federal income tax (10%–37% brackets), NJ state income tax (1.4%–10.75% brackets), Social Security (6.2% up to $184,500), Medicare (1.45% plus 0.9% above $200K), NJ SDI (~0.06%), NJ FLI (0.09%), and NJ WF/SWF (~0.26%). There is no city tax. NJ has no standard deduction — instead it uses a $1,000 personal exemption ($2,000 for MFJ).

Newark Paycheck Calculator 2026

Q: Do Newark residents who work in NYC pay New York taxes?

No. New Jersey residents who commute to work in New York City pay NJ state income tax on their wages, not NY state or NYC city tax. This is governed by a reciprocal tax agreement. Your NYC employer will withhold NJ taxes (or you can claim a credit). This is why many NYC commuters choose to live in Newark, Jersey City, or Hoboken — same commute, lower taxes.

Q: How does Newark compare to Jersey City and Hoboken for taxes?

Newark, Jersey City, and Hoboken are all in New Jersey and have the same state income tax treatment. None of them have a city income tax. The difference is mainly in property taxes and cost of living. Newark has a lower median home price than Jersey City or Hoboken, but property tax rates vary by municipality. All three offer PATH train access to Manhattan, making them popular alternatives to living in NYC.

Your $80K salary becomes $61,431 after federal tax, NJ state tax, and FICA. No city tax. Newark saves $3,077/year over NYC — same PATH train commute.

Calculate your Newark, NJ take-home pay after all taxes

Gross annual salary

Pay frequency

Filing status

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Newark has no city income tax. You pay NJ progressive income tax (1.4%–10.75%) plus NJ payroll taxes. Compared to NYC residents who pay both NY state tax and NYC city tax, Newark residents can save thousands per year — with the same PATH train commute to Midtown.

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How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. The calculator applies 2026 federal income tax brackets, New Jersey state income tax brackets (1.4%–10.75%), FICA taxes (Social Security 6.2% up to $184,500, Medicare 1.45%, and the 0.9% Additional Medicare Tax above $200K), NJ SDI at ~0.06%, NJ FLI at 0.09%, and NJ WF/SWF at ~0.26%. Newark has no city income tax, so there is no additional local withholding. Expand "More options" to add pre-tax 401(k) contributions and health insurance premiums. The result shows your net take-home per paycheck plus a full annual summary.

Tab "Tax Breakdown"

This tab shows a visual pie chart of where every dollar of your Newark salary goes: federal tax, NJ state tax, NJ SDI, NJ FLI, Social Security, Medicare, NJ WF/SWF, and take-home pay. Note the absence of any city tax slice. It calculates how many cents of each dollar you actually keep and your combined effective tax rate.

Tab "Newark vs NYC"

The key comparison tab for commuters. See your take-home pay calculated side-by-side as a Newark, NJ resident versus a NYC resident. Newark residents pay NJ state tax but no city tax. NYC residents pay NY state tax plus NYC city tax (3.078%–3.876%). At $80K single, Newark saves roughly $3,077/year — with the same PATH train commute to World Trade Center in ~25 minutes.

The Formulas

Federal Income Tax (2026 brackets):
Taxable income = Gross salary − Pre-tax deductions − Standard deduction
Single: $15,750 · MFJ: $31,500 · HoH: $23,500
Tax = Sum of (taxable income in each bracket × bracket rate)
Brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

New Jersey State Income Tax (2026 rates):
NJ taxable income = Gross − Pre-tax deductions − Personal exemption ($1,000 single / $2,000 MFJ)
Tax = Sum of (NJ taxable in each bracket × rate)
Brackets: 1.4% up to $20,000, 1.75% to $35,000, 3.5% to $40,000, 5.525% to $75,000, 6.37% to $500,000, 8.97% to $1M, 10.75% above $1M
Note: NJ has no standard deduction — only a personal exemption
Same brackets apply to all filing statuses

Newark City Tax:
None. Newark, NJ does not impose a city income tax.

FICA Taxes:
Social Security = 6.2% × min(Gross salary, $184,500)
Medicare = 1.45% × Gross salary
Additional Medicare = 0.9% × max(0, Gross − $200,000)

NJ SDI (State Disability Insurance):
SDI = ~0.06% × min(Gross salary, $165,500)

NJ FLI (Family Leave Insurance):
FLI = 0.09% × min(Gross salary, $165,500)

NJ WF/SWF (Workforce/Supplemental Workforce):
WF/SWF = ~0.26% × min(Gross salary, $43,300)

Take-Home Pay:
Net = Gross − Federal tax − NJ tax − SS − Medicare − SDI − FLI − WF/SWF − Pre-tax deductions
Per paycheck = Net ÷ Number of pay periods

Example

$80,000 Salary — Single, Biweekly, No 401(k), Newark NJ

Gross annual salary$80,000

Federal income tax$9,049

NJ state income tax$3,100

Newark city income tax$0

Social Security (6.2%)$4,960

Medicare (1.45%)$1,160

NJ SDI (~0.06%)$99

NJ FLI (0.09%)$72

NJ WF/SWF (~0.26%)$113

Total deductions$18,553

Annual take-home$61,431

Biweekly paycheck$2,363

On an $80,000 salary in Newark, NJ, you keep about 77 cents of every dollar. Your combined effective tax rate is 23.2%. The largest chunk goes to federal income tax ($9,049), followed by Social Security ($4,960) and NJ state tax ($3,100). Newark has no city income tax, which is a major advantage over living in NYC where you would pay an additional $2,000+ in city taxes alone. Newark saves approximately $3,077/year over NYC at this salary. Same commute to World Trade Center via PATH train.

Newark vs NYC: The Commuter Tax Advantage

At $80,000 single:

Newark, NJ resident: Federal $9,049 + NJ state $3,100 + FICA $6,120 + NJ payroll $284 = Total tax $18,553 → Net $61,431

NYC resident: Federal $9,049 + NY state $3,633 + NYC city $2,471 + FICA $6,120 = Total tax $21,273 → Net $58,354

Newark saves $3,077/year — that is $256/month more in your pocket.

The PATH train from Newark Penn Station to World Trade Center takes ~25 minutes. Jersey City and Hoboken offer the same NJ tax treatment with similar PATH commute times. Even after NJ's higher median property tax ($9,358 in Newark), many families net ahead compared to NYC rent plus city tax.

Frequently Asked Questions

Does Newark have a city income tax?▼

No. Newark, New Jersey does not impose a city or local income tax. Newark residents pay only federal income tax, NJ state income tax (1.4%–10.75% progressive brackets), and NJ payroll taxes (SDI, FLI, WF/SWF). This is a significant advantage over NYC, where residents pay an additional 3.078%–3.876% city income tax on top of NY state tax. At an $80,000 salary, the absence of city tax saves Newark residents roughly $2,471 compared to the NYC city tax alone.

How much do Newark residents save over NYC residents?▼

On an $80,000 salary (single filer), a Newark resident takes home approximately $61,431 per year while a NYC resident takes home approximately $58,354. That is a savings of roughly $3,077 per year. The savings come from two sources: no NYC city tax ($2,471 saved) and lower NJ state tax compared to NY state tax. Both locations offer a similar commute to Midtown Manhattan — the PATH train from Newark Penn Station to World Trade Center takes about 25 minutes.

Do Newark residents who work in NYC pay New York taxes?▼

No. New Jersey residents who commute to NYC for work pay NJ state income tax, not NY state or NYC city tax. Your NYC employer may initially withhold NY state tax, but you can file for a credit and pay NJ state tax instead. This reciprocal arrangement is the key reason many NYC commuters choose to live in Newark, Jersey City, or Hoboken. You get the same access to Manhattan jobs without the NYC city tax burden.

How does Newark compare to Jersey City and Hoboken for taxes?▼

Newark, Jersey City, and Hoboken are all in New Jersey and pay the same state income tax rates (1.4%–10.75%). None of them have a city income tax. The tax burden on your paycheck is identical across all three cities. The differences are in property taxes and cost of living. Newark generally has lower home prices and rents than Jersey City or Hoboken, though property tax rates vary by municipality. All three cities offer PATH train access to Manhattan, making them popular NJ alternatives to living in NYC.

What are NJ SDI, FLI, and WF/SWF taxes on a Newark paycheck?▼

NJ SDI (State Disability Insurance) is approximately 0.06% on the first $165,500 of wages and funds short-term disability benefits. NJ FLI (Family Leave Insurance) is 0.09% on the same wage base and funds paid family leave. NJ WF/SWF (Workforce Development/Supplemental Workforce Fund) is approximately 0.26% on the first $43,300. Combined, these three payroll taxes cost about $284 per year on an $80,000 salary. These taxes apply to all NJ workers regardless of which city they live in.

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