Bonus Tax in New Jersey (2026)
A bonus is supplemental pay, and it is usually withheld at a flat federal rate rather than your normal bracket. Employers apply 22% to supplemental wages up to a yearly threshold, and a higher rate on the part above it. FICA comes out on top, and then the New Jersey state layer applies.
New Jersey's employee UI/WF/SWF, TDI and FLI levies still apply to a bonus, each up to its own yearly wage cap.
Worked example: a $5,000 bonus in New Jersey
| Federal withholding (22%) | $1,100 |
| FICA (Social Security + Medicare) | $383 |
| New Jersey withholding | aggregate method — varies |
Assumes year-to-date wages under the $184,500 Social Security wage base. Withholding, not final tax — it reconciles on your return.
Bonus tax calculator (2026)
| Federal withholding (flat 22%) | $1,100 |
| FICA (Social Security + Medicare) | $383 |
| New Jersey withholding | aggregate method — varies |
New Jersey has no flat supplemental rate — employers combine the bonus with regular wages (aggregate method), so the exact withholding depends on your paycheck. Assumes your year-to-date wages are under the $184,500 Social Security wage base. Withholding, not your final tax — it reconciles on your return.
See what your regular paycheck keeps in New Jersey: New Jersey paycheck calculator.
Frequently asked questions
Why is my bonus taxed so high?
What you see is withholding, not your final tax. Federal rules withhold supplemental pay like a bonus at a flat 22%, which is often more than your normal rate, so the bonus looks heavily taxed. It squares up when you file, where your real rate is applied to your total income.
Does New Jersey have a flat bonus withholding rate?
It depends on the state. The breakdown above shows New Jersey's supplemental rate if it has one, or notes when the aggregate method applies instead.
Federal: IRS 2026 brackets (Rev. Proc. 2025-32) · FICA: IRS Topic 751 · Wage base: SSA · New Jersey: New Jersey Division of Taxation / NJ Department of Labor · NJ UI/WF/SWF (employee): NJ Department of Labor · NJ TDI (employee): NJ Department of Labor · NJ FLI (employee): NJ Department of Labor. Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.