Live in New York, 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: $4,860 a year
Living in New York and working in New Jersey, you'd pay about $4,860 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 NY | Total | If you worked in NY |
|---|---|---|---|---|
| $50,000 | $1,215 | $888 | $2,103 | $2,103 |
| $75,000 | $2,596 | $857 | $3,453 | $3,453 |
| $100,000 | $4,180 | $680 | $4,860 | $4,860 |
| $150,000 | $7,365 | $926 | $8,291 | $8,291 |
| $250,000 | $13,735 | $2,037 | $15,772 | $15,772 |
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 New York's tax is higher, withhold the difference for New York 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 New York 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
- 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 Jersey income tax if I live in New York?
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 New York and New Jersey?
Usually yes: a nonresident return in New Jersey and a resident return in New York, 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. New York credits the tax you pay New Jersey, so your total is about $4,860 on $100,000, compared with $4,860 if you also worked in New York. Local city or county taxes may still apply.
Related
- Live in New Jersey, work in New York
- Moving from New York to New Jersey
- Moving from New Jersey to New York
- Live in New York, work in Connecticut
- Live in New York, work in Massachusetts
- Live in New York, work in Pennsylvania
- Live in New York, work in Vermont
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.