What taxes do I pay if I live in NJ and work in NYC?

Do You Need to Pay Taxes in Both NY and NJ? Yes and no. You won’t have to pay New York City taxes, and you won’t be fully double taxed on your state income. Your employer will have withheld New York state taxes throughout the year, and you will then gain a New Jersey tax credit back for those taxes.

Do you pay NYC tax if you work in NYC but live in NJ?

YES. If you live in Jersey City or anywhere in New Jersey and commute to New York, you have to file in both states. In fact, if you are commuting, your employer is required to withhold your New York taxes and even report your wages earned to New Jersey.

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Is it cheaper to live in NJ and work in NY?

Newark and Jersey City are both generally cheaper than New York City’s outer boroughs — with the exception of Hoboken, which rivals Manhattan in costliness — despite New Jersey boasting the highest property tax rate in the country. Keep scrolling for a full breakdown of the fixed monthly costs in each place.

Do you have to pay NYC tax if you work in NJ?

You’re also responsible for city income tax if you live in NYC and work in NJ. Tax withholding is required. The rate varies from 3.078 percent to a top marginal rate of 3.876 percent as of the 2019 tax year.

Is it better to live in New Jersey and work in New York?

Living in New Jersey while working in New York City has its advantages. Among them are affordable housing, reliable transportation options into Manhattan, and easier access to parking for car owners.

Do you get taxed twice if you live in NY and work in NJ?

How do I file the taxes for NJ, do I get the whole state income tax refund for NJ? New York (NY) does not have a reciprocal agreement with any state. Your resident state will not tax you twice on the same income. …

Do you pay double taxes if you live in NY and work in NJ?

If you live in NY and work in NJ you get hit twice for both state taxes, if you live in NJ and work in NYC you pay NY state tax, no city tax and NJ credits all or most of your tax back.

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Are taxes higher in NJ or NY?

Understanding State Tax

While both New York and New Jersey have relatively high income taxes, New Jersey’s lowest income tax rate is 1.4 percent while New York’s is 4 percent. The lowest tax bracket is also wider in New Jersey than in the Empire State, as of 2018.

Why are taxes so high in NYC?

New York county (manhattan). Taxes are higher in NYC (than say Oklahoma) for two primary reasons: The federal government taxes New Yorkers very highly, but doesn’t provide a commensurate amount of services, choosing instead to send the money to subsidized states like Oklahoma that can’t pay for themselves.

Where in NJ Can you live and work in NYC?

Most Desirable Places to Live in NJ Close to NYC

  • Edgewater, New Jersey. …
  • North Bergen, New Jersey. …
  • West New York, New Jersey. …
  • Edison, New Jersey. …
  • Iselin, New Jersey. …
  • Weehawken, New Jersey. …
  • Secaucus, New Jersey.


What if I live in NY but work in NJ?

In short, you’ll have to file your taxes in both states if you live in NJ and work in NY. Like most US States, both New York and New Jersey require that you pay State income taxes. Some states have reciprocal tax agreements, allowing you only to pay taxes in your home state.

What is the tax rate for NJ?

Effective January 1, 2018, the New Jersey Sales and Use Tax Rate is 6.625%. Before January 1, 2017, the Sales Tax rate was 7%.

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Do commuters pay NYC income tax?

While the city of New York is barred from charging its own commuter tax, the state of New York does impose an income tax on non-residents that work in the state.

Can you live in New Jersey without a car?

You actually do not need a car to live in Jersey City. The public transportation system is extensive, and even if you work in Manhattan you can get there easily. In fact, 40.6 percent of households in Jersey City do not own car, and 46.62 percent of the population states that they take public transportation to work.

Is New Jersey a good place to live?

The report evaluated states based on five equally weighted categories: affordability, economy, education and health, quality of life, and safety. Of all 50 states, New Jersey placed first in safety, fifth in the “Education and Health” category, and seventh for quality of life.

What is the NJ income tax rate for 2020?

NJ Taxation

Effective January 1, 2020, the tax rate on that income bracket increases from 8.97% to 10.75%, regardless of filing status. Income over $5 million is already subject to this rate.

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