Live in New Jersey, work in New York
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: $4,860 a year
Living in New Jersey and working in New York, you'd pay about $4,860 in state income tax on $100,000 of wages, $680 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 NY | To NJ | Total | If you worked in NJ |
|---|---|---|---|---|
| $50,000 | $2,103 | $0 | $2,103 | $1,215 |
| $75,000 | $3,453 | $0 | $3,453 | $2,596 |
| $100,000 | $4,860 | $0 | $4,860 | $4,180 |
| $150,000 | $8,291 | $0 | $8,291 | $7,365 |
| $250,000 | $15,772 | $0 | $15,772 | $13,735 |
Single filer, all wages earned in New York, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold New York 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 New York 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 New York employer
New York has a "convenience of the employer" rule. Full rule (20 NYCRR 132.18). Nonresidents working from home for a NY-based employer are taxed on those days unless working outside NY is an employer necessity (bona fide employer office test, TSB-M-06(5)I). Upheld again by NY Tax Appeals Tribunal in Zelinsky (2025). Still in force for 2026.
Local income taxes
- New York: NYC personal income tax applies to NYC residents only (about 3.078%-3.876%); nonresidents commuting into NYC pay no city income tax. Yonkers: resident surcharge (16.75% of NY state tax) and 0.5% nonresident earnings tax on wages earned in Yonkers. Self-employed in the MTA district pay MCTMT.
- 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.
- NY: NY does not credit other states' tax on income NY treats as NY-sourced. Main double-tax risk is for nonresidents working remotely for NY employers (convenience rule) whose home state will not credit NY tax on days physically worked at home. NJ and CT generally allow the credit; other states may not.
Frequently asked questions
Do I pay New York income tax if I live in New Jersey?
Yes. New York taxes wages earned there by nonresidents. On $100,000 that's about $4,860.
Do I have to file taxes in both New Jersey and New York?
Usually yes: a nonresident return in New York and a resident return in New Jersey, where you claim a credit for the tax paid to New York. File the New York return first.
Will I be taxed twice?
Not on the same state-level wages. New Jersey credits the tax you pay New York, so your total is about $4,860 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 New York, work in New Jersey
- Moving from New Jersey to New York
- Moving from New York to New Jersey
- Live in New Jersey, work in Delaware
- 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.