Newark Local Income Tax: What It Means for Your Paycheck (2026)
Calculator scope: ExactTakeHome currently calculates federal and New Jersey state income tax. Local income taxes are not included in the calculator.
What is Newark's Local Income Tax?
Newark levies a municipal wage tax on earned wages at 1.0% for residents. Local wage tax on earned income. According to https://www.newarknj.gov/, the Newark municipal wage tax rate for residents is 1.0% as of 2026.
How Much Does Newark's Local Tax Cost?
| Annual Salary | Estimated Local Tax (1.0%) | Monthly Local Tax |
|---|---|---|
| $40,000 | $400 | $33 |
| $60,000 | $600 | $50 |
| $75,000 | $750 | $63 |
| $100,000 | $1,000 | $83 |
| $150,000 | $1,500 | $125 |
Estimated using the municipal wage tax rate.
These are estimates of the local tax component only. Your total paycheck deductions also include federal income tax, Social Security, Medicare, and New Jersey state income tax.
Calculate Your Federal and State Taxes
ExactTakeHome currently calculates federal and New Jersey state income tax for Newark residents. To estimate your take-home pay excluding local tax, use the New Jersey calculator and add the local tax amount from the table above for a full planning estimate.
Does Newark's Local Tax Apply to Remote Workers?
Newark wage tax treatment can depend on residence and where the work is performed. Verify with the city.
Frequently Asked Questions
1.0% municipal wage tax for residents. Source: https://www.newarknj.gov/.
Residents of Newark and workers who earn wages from work performed in Newark may owe local income tax. Rules vary by residence and work location — verify with https://www.newarknj.gov/.
An estimated $750 per year ($63 per month) at the 1.0% rate. This is an estimate of the local component only.
No. ExactTakeHome currently calculates federal and New Jersey state income tax. Local income taxes are not included in the calculator.
Use the New Jersey calculator on ExactTakeHome for federal and state withholding, then subtract the estimated local tax from the table on this page for a planning estimate.