NJ commuter to NYC math
NJ residents working in NYC file NY non-resident return + NJ resident return with a credit. Combined federal + NY non-res + NJ + FICA typically nets ~38–42% effective at $200K. Saves NYC city tax (3.876%) vs. living in NYC.
NJ property tax is the offset
NJ has the highest property tax in the US — averaging 2.2% of assessed value. A $700K NJ home carries $15K+ annually. This is the structural offset to NJ's mid-tier income tax rates.
NJ Millionaires Tax
NJ added a 10.75% bracket above $1M in 2020 (previously kicked in at $5M). High earners moved to FL post-pandemic; remaining high earners feel the full bracket compression.
FAQ
Do I owe NJ tax if I work in NY?
Yes if you're a NJ resident. You file a non-resident NY return and a resident NJ return; NJ gives a credit for NY tax paid. The result is roughly the higher of the two states' rates.
Does NJ tax 401(k) contributions?
NJ taxes pre-tax 401(k) contributions at the state level (no deduction) but exempts distributions when withdrawn. Federal treatment is the opposite — track NJ basis separately.
What is NJ FLI and SDI?
Family Leave Insurance (0.09% in 2026, capped) and State Disability (0.06%, capped) fund paid family leave and short-term disability. Modest but show up on paystubs.
How this calculator is built
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
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Last reviewed
June 2026. We re-check every figure on the platform on a rolling quarterly cycle.
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See our editorial policy and disclaimer. Results are estimates, not advice.