Live in New Jersey, work in Delaware
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 New Jersey and working in Delaware, you'd pay about $5,259 in state income tax on $100,000 of wages, $1,079 more than if you worked 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 tax at different salaries
| Wages | To DE | To NJ | 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.
What to do
- Ask your employer to withhold Delaware tax. If New Jersey's tax is higher, withhold the difference for New Jersey too (or make estimated payments) to avoid an underpayment penalty.
- File the Delaware nonresident return first, then claim the credit for taxes paid to another state on your New Jersey 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 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 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 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?
Usually yes: a nonresident return in Delaware and a resident return in New Jersey, where you claim a credit for the tax paid to Delaware. File the Delaware return first.
Will I be taxed twice?
Not on the same state-level wages. 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.