Live in New Jersey, work in Delaware
Delaware taxes your Delaware wages; New Jersey taxes resident income and may allow a limited credit. Confirm whether the worksite is in Wilmington.
Choose your next step
Payroll starting point: Delaware DE-W4: state payroll withholding (opens in new tab). New Jersey residence does not stop Delaware state withholding. Wilmington tax and its possible New Jersey credit need separate records.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- New Jersey: Division of Taxation (opens in new tab)
- Delaware: Department of Finance - Division of Revenue (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of New Jersey, ordinary employee wages and all workdays physically in Delaware. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
State income tax: $5,259 a year
Modeled annual state income tax for living in New Jersey and working in Delaware: about $5,259 on $100,000 of wages, $1,079 more than if you worked in New Jersey.
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Tax guide and official sources: live in New Jersey, work in Delaware
Official agency starting points: New Jersey tax agency (opens in new tab) · Delaware tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | Delaware work state | New Jersey home state |
|---|---|---|
| Tax before the modeled other-state credit | $5,259 | $4,180 |
| Modeled other-state credit subtracted | $0 | $4,180 |
| Tax after that credit | $5,259 | $0 |
Total: $5,259 + $0 = $5,259 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
The modeled credit is applied in New Jersey, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To DE | To NJ | Modeled total | If you worked in NJ |
|---|---|---|---|---|
| $50,000 | $2,098 | $0 | $2,098 | $1,215 |
| $75,000 | $3,609 | $0 | $3,609 | $2,596 |
| $100,000 | $5,259 | $0 | $5,259 | $4,180 |
| $150,000 | $8,559 | $0 | $8,559 | $7,365 |
| $250,000 | $15,159 | $0 | $15,159 | $13,735 |
Single filer, all wages earned in Delaware, 2026 state tax rules, standard deductions. Local income taxes not included.
From paycheck withholding to your returns
- Withholding: Give Delaware payroll the Delaware-specific DE-W4 and check Delaware state withholding. New Jersey residence is not a Delaware wage exemption: Delaware says the employer must withhold Delaware tax while you work there. Review any New Jersey payment shortfall after the eligible resident credit. If the actual worksite is in Wilmington, check the separate city wage-tax withholding entry too.
- Returns: Prepare Delaware nonresident Form PIT-NON, including the federal return, W-2 withholding evidence and required schedules, before finalizing New Jersey resident NJ-1040 and Schedule NJ-COJ. Keep the completed Delaware return and Wilmington wage-tax records for the New Jersey credit. New Jersey generally does not require copies of other-jurisdiction returns to be attached, but its instructions require a W-2 or statement when no return must be filed with that jurisdiction. The linked annual state instructions are 2025 editions; use the forms and supporting-document rules for the year filed. Wilmington refunds follow the separate city process.
- Credit or refund: New Jersey may credit eligible Delaware state income tax and eligible Wilmington wage tax on income properly taxed by both jurisdictions, subject to its proportional limit. Use actual liability after the other jurisdiction's credits, not gross withholding. If state and city tax the same income amount, NJ-1040 instructions permit one NJ-COJ with the wages counted once and eligible taxes combined. If their income bases differ, use separate common-income and excess-income calculations. This calculator includes only the modeled state credit and does not compute a Wilmington/local credit.
Worked example: $100,000 of wages
Single filer, full-year resident of New Jersey, all work performed in Delaware, no other income, standard deductions and modeled personal exemptions. Before credit, New Jersey tax is $4,180. Modeled New Jersey credit: $4,180. Pay $5,259 to Delaware and $0 to New Jersey, modeled total $5,259.
Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. Local income taxes not included.
Remote-work and local exceptions
This estimate assumes full-year New Jersey residence and every workday physically in Delaware. For a hybrid arrangement, Delaware does not automatically exclude a New Jersey home day: PIT-SCW requires employer-necessary outside-Delaware duties, rather than work solely for employee convenience. Keep the employer policy and work-location records, and use the required PIT-SCW instead of a calendar alone when claiming allocation. Wilmington has its own remote-day certification/refund rules. Hybrid sourcing and the resulting New Jersey credit are not calculated here.
Wilmington office versus an office outside Wilmington
Take two New Jersey residents with ordinary jobs performed entirely at their assigned Delaware worksites. One office is inside Wilmington; that nonresident worker must check city wage tax in addition to Delaware state tax. The other office is outside Wilmington, with no Wilmington work or other city-source compensation; the Wilmington work-location charge does not follow merely from working in Delaware. For the first worker, compare the state and city income bases before preparing NJ-COJ. A remote-day city refund needs the required employer certification; this example calculates neither city tax nor its New Jersey credit.
Official forms and instructions
- Delaware official DE-W4 guidance and certificate download (opens in new tab)
- Delaware DE-W4 / DE-W4NR (revision March 2022): certificate and nonresident worksheet currently linked by DOR (opens in new tab)
- Delaware official FAQ: New Jersey resident working in Delaware (opens in new tab)
- Delaware PIT-NON instructions (2025 edition): return and W-2/federal attachments (opens in new tab)
- Delaware PIT-SCW (2025 edition): employer-necessity workday allocation (opens in new tab)
- Delaware current personal-income-tax forms and editions (opens in new tab)
- New Jersey NJ-1040 instructions (2025 edition): NJ-COJ state/city income-base distinction (opens in new tab)
- New Jersey GIT-3W (January 2026): limited wage credit and examples 4/9 (opens in new tab)
- New Jersey current resident-credit guidance: retain other returns (opens in new tab)
- Wilmington earned-income-tax regulations (May 2023 revision): city work and remote-day certification (opens in new tab)
- Wilmington city wage-tax forms and refund guidance: choose the applicable year (opens in new tab)
Source audit 2026-11-01. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.
Check your payslip and keep these records
- Compare the payroll certificate you supplied with the state withholding on your next payslip. Check city, county and school-district entries separately; a state exemption does not settle local tax.
- Keep your W-2 and other withholding statements, copies of payroll certificates, filed state and local returns, and proof of tax paid. A refund depends on actual withholding and the completed return, not this annual estimate.
- Keep an actual work-location log, including home-working days. This calculator assumes ordinary employee wages, full-year residence in New Jersey and every workday physically in Delaware.
- If you moved during the year, have nonwage income or do not meet that scope, follow the pair's remote and local exceptions and the moving-year tax guide before using the amount as your own result. This tool does not calculate hybrid allocation, local credits or a personal refund.
What to do
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for a Delaware employer
Delaware has a "convenience of the employer" rule. Full rule: days worked at home for convenience by nonresidents of DE-based employers count as DE workdays.
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 may also claim a credit for eligible income or wage taxes paid to cities and other local governments in Delaware, in addition to other-state income tax. Check the New Jersey credit instructions and limits; local tax or credit amounts are not calculated here.
Frequently asked questions
Do I pay Delaware income tax if I live in New Jersey?
Yes. Delaware taxes wages earned there by nonresidents. On $100,000 that's about $5,259.
Do I have to file taxes in both New Jersey and Delaware?
Prepare Delaware nonresident Form PIT-NON, including the federal return, W-2 withholding evidence and required schedules, before finalizing New Jersey resident NJ-1040 and Schedule NJ-COJ. Keep the completed Delaware return and Wilmington wage-tax records for the New Jersey credit. New Jersey generally does not require copies of other-jurisdiction returns to be attached, but its instructions require a W-2 or statement when no return must be filed with that jurisdiction. The linked annual state instructions are 2025 editions; use the forms and supporting-document rules for the year filed. Wilmington refunds follow the separate city process.
Will I be taxed twice?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. New Jersey credits the tax you pay Delaware, so your total is about $5,259 on $100,000, compared with $4,180 if you also worked in New Jersey. Local city or county taxes may still apply.
Related
- Live in Delaware, work in New Jersey
- Moving from New Jersey to Delaware
- Moving from Delaware to New Jersey
- Live in New Jersey, work in New York
- Live in New Jersey, 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.