States/New Jersey/Local Jurisdictions

New Jersey Local Payroll Taxes

Two New Jersey cities levy local payroll taxes on employers: Newark and Jersey City. These are employer-paid taxes, not withheld from employees.

2
Cities with Payroll Tax
1%
Standard Rate
Employer
Paid By
Quarterly
Filing Frequency

New Jersey Local Payroll Tax Rules

• Employer-paid: Unlike income taxes, NJ local payroll taxes are paid by employers, not withheld from employees.

• Payroll expense tax: Tax is calculated on total payroll expense for employees working in the city.

• Urban Enterprise Zone: Some businesses in designated UEZ areas may qualify for exemptions or reduced rates.

• No state income tax withholding: NJ has no local income tax—only Newark and Jersey City have payroll taxes.

Cities with Local Payroll Tax

Newark

311K
1%
payroll tax

Employer-paid payroll expense tax on wages for work performed in Newark.

Jersey City

292K
1%
payroll tax

Employer-paid payroll expense tax on wages for work performed in Jersey City.

Back to New Jersey State Guide