New Jersey Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and New Jersey state income tax as a freelancer or 1099 contractor. New Jersey has a progressive income tax with rates from 1.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$2,651
Total Tax Owed
$20,043

Summary

Total Income
$75,000
Total Taxes
-$20,043
After-Tax Income
$54,957
Effective Tax Rate(on total income)
26.7%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,011
Q2 (Apr-May)Due June 15
$5,011
Q3 (Jun-Aug)Due September 15
$5,011
Q4 (Sep-Dec)Due January 15 (next year)
$5,011
Each Quarterly Payment
$5,011

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,011. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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New Jersey Tax Overview for Freelancers

New Jersey has a progressive income tax with rates from 1.4% to 10.75%. Combined with some of the highest property taxes in the nation, New Jersey has a significant tax burden. Self-employed individuals in New Jersey pay federal self-employment tax (15.3%) plus federal income tax, and New Jersey state income tax on their net self-employment earnings.

Progressive rates up to 10.75%SDI and FLI payroll taxesHighest property taxes in the nationNo tax on Social SecurityProximity to NYC job market

Self-Employment Taxes in New Jersey

If you work as a freelancer or independent contractor in New Jersey, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and New Jersey state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

New Jersey Income Tax for Freelancers

New Jersey has a progressive income tax with rates from 1.4% to 10.75%. Combined with some of the highest property taxes in the nation, New Jersey has a significant tax burden.

Cost of Living for Freelancers in New Jersey

New Jersey's cost of living is about 20% above the national average, with property taxes and housing being the largest contributors. As a freelancer in New Jersey, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for New Jersey Freelancers

  • New Jersey's 10.75% top rate combined with high property taxes makes pre-tax deductions crucial
  • New Jersey SDI and FLI payroll taxes add additional deductions from your paycheck
  • New Jersey does not tax Social Security benefits
  • Despite high taxes, proximity to NYC offers access to the highest-paying job market in the country

Key New Jersey Tax Features

  • Progressive rates up to 10.75%
  • SDI and FLI payroll taxes
  • Highest property taxes in the nation
  • No tax on Social Security
  • Proximity to NYC job market

Model Your New Jersey Freelance Finances Over Time

This calculator shows your New Jersey tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Frequently Asked Questions

How is self-employment tax calculated in New Jersey?
Self-employed workers in New Jersey pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and New Jersey state income tax. New Jersey has a progressive income tax with rates from 1.4% to 10.75%. Combined with some of the highest property taxes in the nation, New Jersey has a significant tax burden.
How much will I owe in quarterly taxes as a freelancer in New Jersey?
Your quarterly estimated tax payment in New Jersey depends on your total tax liability — including SE tax, federal income tax, and New Jersey state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for New Jersey freelancers?
Freelancers in New Jersey can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your New Jersey state taxable income, providing additional state tax savings.
Does New Jersey have any special taxes for self-employed workers?
New Jersey does not have a separate self-employment tax. However, your net self-employment income is subject to New Jersey's regular income tax (10.75% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in New Jersey?
The decision to form an LLC or S-Corp in New Jersey depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a New Jersey tax professional for advice specific to your situation.

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