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NJ

New Jersey Nanny Tax Guide

New Jersey takes care of its workers—your employee will have both disability coverage and paid family leave. There's a bit more to track here than in simpler states, but your employee gets some real benefits. We handle all the calculations so you don't have to worry about the details.

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$15.49/hour

SUTA Rate Range

0.5% - 5.7%

Key Things to Know

  • Your employee gets disability and family leave coverage
  • You'll withhold state income tax from each paycheck
  • New Jersey has a strong minimum wage ($15.49/hour)
  • We handle all the Garden State calculations for you

New Jersey Employer Requirements

Withhold state income tax from each paycheck

You'll withhold New Jersey income tax based on your employee's earnings. For most household employees, the rate is between 1.75% and 5.5%. We calculate the exact amount each pay period.

Disability insurance is covered

New Jersey provides Temporary Disability Insurance to protect workers who get sick or injured outside of work. For 2025, this is employer-funded—nothing comes out of your employee's paycheck, and we include it in your tax calculations.

Withhold for Family Leave Insurance

Your employee contributes a tiny amount (about 0.06%) toward Family Leave Insurance. This gives them access to up to 12 weeks of paid leave to bond with a new baby or care for a sick family member—a valuable benefit.

Pay into the state unemployment fund

You'll contribute to New Jersey's unemployment fund. New employers pay about 2.75% on the first $42,300 of wages (one of the higher wage bases in the country). We track this automatically so you stay on top of it.

What will it cost?

Wondering what you'll actually owe as a New Jersey employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of February 2026Sources: New Jersey tax agency, IRS Publication 926

NannyKeeper handles New Jersey taxes automatically

We calculate and track all state-specific requirements so you don't have to.

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