Newark Local Tax Guide (2026)
Newark's 1% payroll tax is paid by employers. It is not withheld from employees' pay.
In this guide
Last updated: October 1, 2026
- •Newark's 1% payroll tax is paid by employers. It is not withheld from employees' pay.
- •The City of Newark charges employers 1% of the pay of the people who work in the city. Its 2026 booklet says the employer is responsible for the tax, so it does not come out of your paycheck.
- •New Jersey cities do not tax employees' wages. New Jersey income tax and the state's worker contributions for disability, family leave and unemployment still apply.
What applies in Newark
Newark's 1% payroll tax is paid by employers. It is not withheld from employees' pay.
The City of Newark charges employers 1% of the pay of the people who work in the city. Its 2026 booklet says the employer is responsible for the tax, so it does not come out of your paycheck.
New Jersey cities do not tax employees' wages. New Jersey income tax and the state's worker contributions for disability, family leave and unemployment still apply.
Source: City of Newark: Payroll Tax Booklet 2026, checked October 2026.
What it means for your paycheck
Take-home pay in Newark comes down to federal tax, Social Security and Medicare, and New Jersey tax.
Our New Jersey calculator covers federal income tax, Social Security and Medicare, New Jersey income tax and any state payroll contributions. It adds no Newark line: what, if anything, applies there is set out above.