--- title: Employers Must Use Revised New Jersey Percentage Method Withholding Tables by September 1 description: The New Jersey Division of Taxation has issued revised percentage method withholding tables with a new withholding rate of 15.6% for income over $5 million. image: https://www.americanpayroll.org/images/default-source/default-album/apawebimages_july26-2018_state_newjersey.jpg?sfvrsn=b7b0f1f9_0 --- [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/American-Payroll-Associations-Chapter-Relations-877434285724525/) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](http://www.linkedin.com/groups?about=&gid=1051077&trk=anet_ug_grppro) [![soc-tw](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_tw.svg "soc-tw")](https://twitter.com/APAChapters?lang=en) - [Home](https://blogs.payroll.org/chapter-leaders) - [About](https://blogs.payroll.org/about) - [Connect](https://blogs.payroll.org/connect) - [Resources](https://blogs.payroll.org/resources) ![23-PayNewsNow-Horiz-Logo](https://blogs.payroll.org/hs-fs/hubfs/23-PayNewsNow-Horiz-Logo.png?width=1300&name=23-PayNewsNow-Horiz-Logo.png "23-PayNewsNow-Horiz-Logo") [![26 PayrollOrg®RGB-NoTag long](https://blogs.payroll.org/hs-fs/hubfs/26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg?width=1300&name=26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg "26 PayrollOrg®RGB-NoTag long")](https://payroll.org/) ![](https://blogs.payroll.org/hs-fs/hubfs/PayrollOrg_Swirl.jpg?width=35&name=PayrollOrg_Swirl.jpg) Custom URL No Widget: By [PayrollOrg Staff](https://blogs.payroll.org/pay-news-now/author/apa-staff) on Jul 26, 2018 2:00:00 PM # Employers Must Use Revised New Jersey Percentage Method Withholding Tables by September 1 The New Jersey Division of Taxation (DOT) has issued revised percentage method withholding tables for wages paid on or after September 1, 2018. The revised tables reflect a new withholding rate of 15.6% for income over $5 million. Employers should start using the new withholding tables as soon as possible, but no later than September 1 \[DOT, [**Pub. NJ-WT, *New Jersey Income Tax Withholding Instructions***](https://www.state.nj.us/treasury/taxation/pdf/current/njwt.pdf), rev. July 2018\]. Legislation enacted on July 1, 2018, created a new personal income tax rate of 10.75% for income over $5 million (regardless of the taxpayer’s filing status), retroactive to January 1, 2018. For the remainder of 2018, there is a new withholding rate of 15.6% for wages over $5 million. The higher withholding rate should allow affected employees to catch up on their withholding for the year, without employers having to adjust withholding back to January 1 \[DOT, [**Notice**](https://www.state.nj.us/treasury/taxation/git2018TaxRates.shtml), 7-23-18\]. The DOT will not impose interest or penalties for insufficient payment of estimated tax and/or withholding tax that may otherwise be due before September 1, 2018, if the insufficiency is a result of the new tax rate. Interested in more state and local payroll coverage? APA’s [***PayState Update***](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=19) eNewsletter is perfect for you. ### Search ![payroll-logo-white](https://blogs.payroll.org/hs-fs/hubfs/payroll-logo-white.png?width=200&name=payroll-logo-white.png "payroll-logo-white") [Privacy Policy](http://www.americanpayroll.org/privacy/)     |     Acceptable Use ©[PayrollOrg](http://payroll.org) [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/PayrollOrg) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](https://www.linkedin.com/company/payroll-org/mycompany/) [![Twitter-X-White-Logo-PNG](https://blogs.payroll.org/hs-fs/hubfs/Twitter-X-White-Logo-PNG.png?width=20&height=19&name=Twitter-X-White-Logo-PNG.png)](https://twitter.com/PayNews)