Bonuses in New Jersey are taxed as supplemental wages, with a federal flat rate of 22% (or 37% above $1 million) and a New Jersey state tax rate ranging from 1.4% to 10.75%, depending on your income bracket. The exact state tax depends on your total taxable income, including the bonus.

The New Jersey state tax rate for bonuses in 2025 varies progressively from 1.4% for income up to $20,000 to 10.75% for income over $5 million. Additionally, federal withholding applies at 22% for bonuses up to $1 million, plus Social Security (6.2%) and Medicare (1.45%) up to applicable caps.

Yes, bonuses are considered supplemental wages and are subject to a flat federal withholding rate of 22% (or 37% over $1 million), unlike regular income, which uses graduated tax tables. In New Jersey, the state tax rate aligns with your total income bracket, applied similarly to regular wages.

To calculate your net bonus, subtract federal tax (22% or 37%), NJ state tax (1.4%–10.75% based on income), Social Security (6.2% up to $176,100), and Medicare (1.45%, plus 0.9% over $200,000 for singles) from your gross bonus. Online calculators tailored for 2025 can simplify this process.

Your bonus won’t change your tax bracket directly, as NJ uses your total annual income Bracket rates (1.4%–10.75%) apply progressively, so only the portion of your bonus exceeding a threshold gets taxed at a higher rate. Federal taxes remain flat at 22% for supplemental wages up to $1 million.

New Jersey doesn’t offer specific deductions for bonuses, but you can reduce taxable income with standard deductions ($1,000 for singles, $2,000 for married filing jointly) or itemized deductions like charitable contributions. Federal taxes on bonuses don’t allow extra deductions beyond regular income rules.

The federal supplemental tax rate of 22% (or 37% over $1 million) is withheld from your bonus before New Jersey state taxes are applied. This reduces your net bonus upfront, with NJ then taxing the gross amount based on your income bracket (1.4%–10.75%).

Yes, bonuses are subject to FICA taxes: 6.2% for Social Security (up to the $176,100 cap) and 1.45% for Medicare (no cap), plus an extra 0.9% Medicare tax if your income exceeds $200,000 (single) or $250,000 (married). These apply on top of federal and NJ state taxes.

Yes, if your employer allows it, deferring your bonus to 2026 could lower your 2025 taxable income, potentially reducing your NJ tax rate if you expect less income next year. Consult your employer and a tax professional, as deferral doesn’t avoid federal withholding.

You can find reliable 2025 NJ bonus tax calculators on sites like PaycheckCity, TurboTax, or custom tools built with updated 2025 tax rates. Ensure the calculator includes federal (22%/37%), NJ state (1.4%–10.75%), and FICA rates for accuracy.