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How personal injury lawyer fees work

Updated October 19, 2026By the Counselworthy team General information, not legal advice

Short answer

Personal injury lawyers commonly charge a contingency fee: a share of what you recover, paid only if the case succeeds.
Cornell's Legal Information Institute says it's often 20% to 50%.
The agreement must be in writing.
In New Jersey, a court rule caps the fee at 33⅓% of the first $750,000.

Checked October 19, 2026.

Sources: Wex, Contingency fee; R. 1:21-7(c), (d). Every fact cites a source

Illustration: a fountain pen resting on a blank page on a wooden desk, lit by a desk lamp, with a city skyline at dusk

How a contingency fee works

The lawyer's pay depends on the result, and often on how far the case goes before it settles.

The usual range20% to 50% of the recovery

Common in personal injury cases. The lawyer is paid only if the case succeeds.

In New JerseyCapped at 33⅓% of the first $750,000

Lower caps apply above that, and a court sets the fee above $3,000,000.

Source: Wex, Contingency fee; R. 1:21-7(c), (d)

What the fee agreement must say

What the Model Rules of Professional Conduct require, as Cornell's Legal Information Institute describes them. New Jersey's own rules follow.

It's in writing, signed by youA contingency fee agreement has to be written and signed by the client.Source: Wex, Contingency fee
How the fee is figuredThe agreement states the method by which the fee is determined.Source: Wex, Contingency fee
Expenses you could oweIt must clearly tell you about any expenses you'd be liable for.Source: Wex, Contingency fee
A statement at the endWhen the case ends, the lawyer gives you a written statement of the outcome.Source: Wex, Contingency fee

NJNew Jersey's rules on top

NJAn hourly option first

In an injury case, before a contingency agreement, the lawyer must offer a fee based on the reasonable value of the work.

Source: R. 1:21-7(b), (g); RPC 1.5(c)

NJCosts before or after the fee

The agreement must say whether expenses come out before or after the fee. The capped fee is figured after case costs come out.

Source: R. 1:21-7(b), (g); RPC 1.5(c); R. 1:21-7(c), (d)

NJA signed copy, and a closing statement

You get a signed copy of the agreement. At the end, the lawyer gives you a signed closing statement.

Source: R. 1:21-7(b), (g); RPC 1.5(c)

NJWorkers' comp cases

The judge may allow a reasonable lawyer fee of up to 25% of the judgment.

Source: N.J.S.A. 34:15-64(a), as amended by P.L.2024, c.55; Acting Governor's bill signing, August 22, 2024

NJNew Jersey's limits, band by band

The rule caps the fee on each band of the recovery, like tax brackets. Each lower rate applies only to the part of the recovery inside its band.

First $750,000R. 1:21-7(c)33⅓%
Next, up to $1,500,000R. 1:21-7(c)30%
Next, up to $2,250,000R. 1:21-7(c)25%
Next, up to $3,000,000R. 1:21-7(c)20%
Above $3,000,000R. 1:21-7(c)Set by a court

Source: R. 1:21-7(c), (d)

NJFigured after case costs

In New Jersey, the capped fee is figured on the net sum recovered: what's left after case costs come out. Here's how that plays out on a settlement.

What would you take home?

Estimate what a client keeps from a settlement after New Jersey's capped contingency fee and case costs.

Open the take-home calculator

Settlement: $25,000
Case costs: −$1,500
Max fee, 33⅓% of $23,500: −$7,833
Estimated take-home: $15,667

Estimate only, before medical liens and unpaid bills. Fee cap from New Jersey Court Rule 1:21-7. Firms may charge less.

Source: R. 1:21-7(c), (d)

NJA child's case

A judge decides whether a child's injury settlement is fair and reasonable. If the case settles before a jury is seated, the lawyer's fee is capped at 25%.

Source: R. 4:44-3; R. 1:21-7(c)(6)

NJWhat local firms publish about fees

The rule sets the most a lawyer may charge. We checked whether local firms say on their website what they charge, and how they handle case costs.

None of the 23 Jersey City injury firms we checked publish their fee on their website.

5 of 23 explain who pays case costs.

21 of 23 say the first consultation is free.

See which firms, on the Jersey City transparency scorecard

From each firm's own website, checked November 1, 2026.

Questions to ask about the fee

What percent do you charge?Ask for this lawyer's own percent. In New Jersey, a court rule caps it.Source: R. 1:21-7(c), (d)
Which costs come out of the recovery?Ask which costs those are, and roughly what they come to. In New Jersey, the capped fee is figured after costs.Source: R. 1:21-7(c), (d)
Who pays the costs if there's no recovery?Get the answer in writing, before you sign.
Does the percent change if the case goes to trial?Ask, and get that in writing too.

Sources

Wex, Contingency feeWhat a contingency fee is, the usual range in injury cases, and what the Model Rules of Professional Conduct ask of the agreement. Checked October 19, 2026.
R. 1:21-7(c), (d)New Jersey Court Rules, via Court Rules Network. Checked October 14, 2026.
R. 1:21-7(b), (g)New Jersey Court Rules, via Court Rules Network. Checked October 11, 2026.
RPC 1.5(c)New Jersey Rules of Professional Conduct, via Court Rules Network. Checked October 11, 2026.
N.J.S.A. 34:15-64(a), as amended by P.L.2024, c.55New Jersey State Library, P.L.2024, c.55. Checked October 11, 2026.
Acting Governor's bill signing, August 22, 2024State of New Jersey, Office of the Governor (Internet Archive copy). Checked October 14, 2026.
R. 4:44-3New Jersey Court Rules, via Court Rules Network. Checked October 7, 2026.
R. 1:21-7(c)(6)New Jersey Court Rules, via Court Rules Network. Checked October 7, 2026.

General information, not legal advice. We don't know the facts of your claim. A lawyer can review them, and most injury lawyers offer a free consultation.

What to do next

Next questionYour first injury lawyer consultationWhat to bring and what to ask on the first call.
Ready to call a firm?How to choose a personal injury lawyerHow to check a lawyer's certification, discipline record and fee.
Top 3 in Jersey City
1. Rank 1Garces, Grabler & LeBrocq, P.C.Score 93
2. Rank 2Brach Eichler Injury LawyersScore 81
3. Rank 3John Allegra LawScore 58
Compare firmsCar accident lawyers, ranked on public recordsCompare before you call. No firm pays to rank.Car accident lawyers in Jersey City Car accident lawyers in Hoboken

Questions people ask

How much does a personal injury lawyer cost?

Personal injury lawyers commonly work on a contingency fee: a share of what you recover, paid only if the case succeeds. Cornell's Legal Information Institute says it's often 20% to 50%. In New Jersey, a court rule caps it at 33⅓% of the first $750,000.

Do you pay a personal injury lawyer if you lose?

Under a contingency fee, the lawyer is paid only if the case succeeds. The agreement must clearly say which expenses you'd be liable for, so read that part before you sign.

Is the lawyer's percentage taken before or after costs?

The agreement says. In New Jersey, it must state whether expenses come out before or after the fee, and the capped fee is figured after case costs come out.

Does the fee change if the case goes to trial?

It can. Cornell's Legal Information Institute says the fee often depends on the phase of the case in which it settles. The written agreement states how the fee is figured.

What is the maximum contingency fee in New Jersey?

In an injury case, 33⅓% of the first $750,000, 30% up to $1,500,000, 25% up to $2,250,000 and 20% up to $3,000,000. Above that, a court sets the fee.

What is the fee cap on a child's injury settlement in New Jersey?

If the case settles before a jury is seated, the fee is capped at 25%. A judge also decides whether the settlement is fair and reasonable.

What contingency fee do Jersey City injury lawyers charge?

Our Jersey City transparency scorecard counts which firms publish a percent on their website, and what it is. The same court-rule cap applies to every firm.

How much do lawyers take in a workers' comp case in New Jersey?