Live in Delaware, work in New Jersey
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State income tax: $5,259 a year
Living in Delaware and working in New Jersey, you'd pay about $5,259 in state income tax on $100,000 of wages.
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State tax at different salaries
| Wages | To NJ | To DE | Total | If you worked in DE |
|---|---|---|---|---|
| $50,000 | $1,215 | $883 | $2,098 | $2,098 |
| $75,000 | $2,596 | $1,013 | $3,609 | $3,609 |
| $100,000 | $4,180 | $1,079 | $5,259 | $5,259 |
| $150,000 | $7,365 | $1,194 | $8,559 | $8,559 |
| $250,000 | $13,735 | $1,424 | $15,159 | $15,159 |
Single filer, all wages earned in New Jersey, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold New Jersey tax. If Delaware's tax is higher, withhold the difference for Delaware too (or make estimated payments) to avoid an underpayment penalty.
- File the New Jersey nonresident return first, then claim the credit for taxes paid to another state on your Delaware resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for a New Jersey employer
New Jersey has a "convenience of the employer" rule. Retaliatory rule enacted 2023, retroactive to Jan 1, 2023: applies to residents of convenience-rule states (NJ currently lists DE, NE, NY) working remotely for NJ employers. PA residents excluded due to reciprocity; CT residents handled separately.
Local income taxes
- Delaware: Wilmington levies a 1.25% earned income tax on residents and on nonresidents working in the city - relevant for PA, NJ, MD commuters.
- New Jersey: No local wage tax on employees (Newark's 1% payroll tax is employer-paid).
Special credit rules
- NJ: New Jersey residents can also credit income or wage taxes paid to cities and other local governments in other states (for example, the Philadelphia Wage Tax) against New Jersey tax, not only other states' taxes.
Frequently asked questions
Do I pay New Jersey income tax if I live in Delaware?
Yes. New Jersey taxes wages earned there by nonresidents. On $100,000 that's about $4,180.
Do I have to file taxes in both Delaware and New Jersey?
Usually yes: a nonresident return in New Jersey and a resident return in Delaware, where you claim a credit for the tax paid to New Jersey. File the New Jersey return first.
Will I be taxed twice?
Not on the same state-level wages. Delaware credits the tax you pay New Jersey, so your total is about $5,259 on $100,000, compared with $5,259 if you also worked in Delaware. Local city or county taxes may still apply.
Related
- Live in New Jersey, work in Delaware
- Moving from Delaware to New Jersey
- Moving from New Jersey to Delaware
- Live in Delaware, work in Maryland
- Live in Delaware, work in Pennsylvania
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.