Live in New York, work 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.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- New York: Department of Taxation and Finance (opens in new tab)
- New Jersey: Division of Taxation (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 York, ordinary employee wages and all workdays physically in New Jersey. 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: $4,860 a year
Modeled annual state income tax for living in New York and working in New Jersey: about $4,860 on $100,000 of wages.
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 York, work in New Jersey
Official agency starting points: New York tax agency (opens in new tab) · New Jersey 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 | New Jersey work state | New York home state |
|---|---|---|
| Tax before the modeled other-state credit | $4,180 | $4,860 |
| Modeled other-state credit subtracted | $0 | $4,180 |
| Tax after that credit | $4,180 | $680 |
Total: $4,180 + $680 = $4,860 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 York, 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 NJ | To NY | Modeled 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.
From paycheck withholding to your returns
- Withholding: Ask payroll to withhold New Jersey tax on New Jersey-source wages. Compare that withholding with your New York resident liability; additional New York withholding or estimated payments may be needed.
- Returns: Prepare NJ-1040NR, the New Jersey nonresident return, then New York IT-201 with resident credit Form IT-112-R, following each year's instructions.
- Credit or refund: New York's resident credit is limited and requires eligible income sourced to and taxed by the other jurisdiction. NYC resident tax, Yonkers tax and credits are outside this state-only example.
Worked example: $100,000 of wages
Single filer, full-year resident of New York, all work performed in New Jersey, no other income, standard deductions and modeled personal exemptions. Before credit, New York tax is $4,860. Modeled New York credit: $4,180. Pay $4,180 to New Jersey and $680 to New York, modeled total $4,860.
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
New Jersey applies its convenience test to residents of states with a similar rule, including New York. Employer necessity and work location matter. Do not use this all-wages-in-New-Jersey example as a hybrid-work allocation.
Official forms and instructions
- New Jersey nonresident return guidance (opens in new tab)
- New York resident credit and IT-112-R (opens in new tab)
- New Jersey convenience rule (opens in new tab)
Source audit 2026-09-30. 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.
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 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).
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?
Prepare NJ-1040NR, the New Jersey nonresident return, then New York IT-201 with resident credit Form IT-112-R, following each year's instructions.
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 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.