New Jersey Overtime Calculator

Not fully. For 2025-2028 the federal premium, the "half" of time-and-a-half, is also deductible when you file, up to $12,500 ($25,000 married filing jointly). It's claimed on Schedule 1-A, phases out above $150,000 of income ($300,000 joint), and doesn't reduce Social Security or Medicare. It's a federal deduction, so don't assume New Jersey income tax follows it. Your employer still withholds on overtime unless you claim the deduction on a new W-4, so for most people it shows up as a bigger refund.

Overtime can push your annualized income into a higher bracket, but only the dollars above the threshold are taxed at the higher rate: you always take home more by working the hours. Priced for New Jersey: five overtime hours a week is worth $7,254 a year after tax, ten overtime hours a week is worth $14,008 a year after tax, fifteen overtime hours a week is worth $20,243 a year after tax, against $19,500 gross on the middle figure.

Under the Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular rate beyond 40 hours in a workweek. New Jersey adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

New Jersey follows the federal FLSA standard: at least 1.5× your regular rate for hours beyond 40 in a workweek, with no additional daily-overtime requirement. If you believe you're owed overtime, the New Jersey Department of Labor is the place to check. Our calculator uses the standard 1.5× multiplier.

Add regular earnings (rate × regular hours) to overtime earnings (rate × 1.5 × overtime hours), then subtract federal tax, New Jersey income tax and FICA. In New Jersey that leaves about 71.8% of each overtime dollar: $14,008 of the $19,500 that ten overtime hours a week adds over a year.

Against the 3 states New Jersey borders, the same ten overtime hours a week is worth $14,008 here: Pennsylvania keeps $562 more ($14,570), New York keeps $23 more ($14,031) and Delaware leaves $9 less ($13,999). New York and Pennsylvania are the only borders worth crossing for the tax alone.

New Jersey property taxes come through mortgage escrow or direct property tax bills, not on your paycheck. This means many people don't factor them in when comparing states, but they can significantly impact your total tax burden. A homeowner with a $500,000 property might pay $10,000-$15,000+ annually in property taxes, which can offset or exceed income tax savings compared to other states. Always factor in property taxes when evaluating New Jersey.

New Jersey's brackets are compressed at the bottom, meaning the first few brackets cover relatively small dollar amounts ($20,000-$75,000). For most taxpayers earning above $40,000-$50,000, virtually all income above the first bracket is taxed at 6.37%-10.75%. This means the 'progressive' system effectively operates like a flat 6.37%+ tax for most earners, which surprises people who expect progressive brackets to mean gradual increases.