New Jersey vs New York taxes

Closer than you would think

New Jersey and New York both have a reputation for high taxes, and on a typical salary they come out within a few hundred dollars of each other. On $75,000 a single filer keeps $58,491 in New Jersey and $57,784 in New York, a gap of $707.

The two states get there differently. New Jersey’s income tax is lower on ordinary salaries: $2,596 on $75,000, against $3,453 in New York. New Jersey has no standard deduction, only a $1,000 personal exemption, but its bottom rates are low: 1.4% on the first $20,000 and 1.75% to $35,000.

New Jersey takes more in payroll deductions. Three programs come out of a New Jersey paycheck: unemployment and workforce funds, temporary disability insurance and family leave insurance. They total $505 on $75,000. New York’s paid family leave and disability insurance come to $355.

At higher incomes the two converge. The table above shows which state keeps more at each salary. The lead can change hands, so check your own figure in the calculator rather than trusting a rule of thumb.

If the New York side means New York City

Everything above compares New Jersey with New York State outside the city. Living in the five boroughs adds New York City’s own income tax, and that changes the answer: on $75,000 it costs a single filer $2,263 a year after the school tax credit. The New York City paycheck calculator adds it in.

Living in one state and working in the other

The figures above assume you live and work in the same state. Many people don’t, and for them the rule is that income tax follows where you work. New Jersey and New York have no reciprocal agreement.

If you live in New Jersey and work in New York, New York taxes those wages as a nonresident. New Jersey then taxes you as a resident and gives a credit for the New York tax, capped at what New Jersey would have charged on the same income. So you pay roughly the higher of the two states’ tax. At every salary from $50,000 to $500,000 that is New York's, so a commuter's income tax looks like the New York column, not the New Jersey one.

What the commuter does avoid is the city. The New York City tax falls only on residents of the five boroughs, so living in Jersey City or Hoboken and working in Manhattan avoids it entirely.

What the comparison leaves out

Take-home pay is only one side of the ledger. Property taxes, housing costs and commuting costs differ widely between the two states and within them, and for most households they matter more than the gap above. This page compares what is taken from wages.

Questions people ask

Do you take home more in New Jersey or New York on $75,000?

New Jersey, by $707 a year, or $59 a month, for a single filer in 2026. That counts federal tax, Social Security, Medicare, state income tax and every state payroll deduction.

Is the difference the same at every salary?

No. The side that keeps more changes with the salary: $30,000: New Jersey by $493; $50,000: New Jersey by $735; $75,000: New Jersey by $707; $100,000: New Jersey by $512; $150,000: New Jersey by $67; $250,000: New York by $239.

Do I pay New York or New Jersey tax if I live in New Jersey and work in Manhattan?

Both file, but you are not taxed twice. New York taxes the wages you earn there as a nonresident. New Jersey taxes you as a resident, then gives a credit for the New York tax, capped at what New Jersey would have charged. There is no reciprocal agreement between the two states. In practice you pay roughly the higher of the two states' tax on those wages.

Does a New Jersey resident working in New York pay New York City tax?

No. The New York City income tax is a resident tax. It follows where you live, not where your office is, so a commuter from Jersey City or Hoboken does not pay it.

Which state has more payroll deductions?

New Jersey. Employees there pay into unemployment and workforce funds, temporary disability insurance and family leave insurance. New York employees pay into paid family leave and a small disability insurance charge capped at 60 cents a week.

What this comparison covers

Income tax and payroll deductions on wages: federal income tax, Social Security, Medicare, state income tax, every state payroll deduction. It does not compare sales tax, property tax, housing or the cost of living, which can outweigh the difference in take-home pay. Figures assume the standard deduction, no dependents and no pre-tax retirement contributions. See how we calculate.