Tax Rate Comparison

Tax TypeNew YorkNew Jersey
Income Tax4%-10.9% + NYC tax up to 3.876%1.4%-10.75% (7 brackets)
Sales Tax4% (avg ~8.52%)6.625%
Property Tax1.40%2.23% (highest in US)
Estate TaxYes (over $6.94M)Yes (over $2M) + inheritance tax
Corporate Tax6.5%9% (11.5% over $1M)

Income Tax at Different Levels

IncomeNew YorkNew JerseyWinnerAnnual Savings
$50,000$2,600$1,850New York$750
$100,000$5,900$4,700New York$1,200
$200,000$14,800$13,500New York$1,300

Who Should Live in New York?

NYC workers avoiding commute, singles and renters

Who Should Live in New Jersey?

Families wanting suburbs, NYC commuters saving on city tax

Frequently Asked Questions

Is New Jersey cheaper than New York?

For income tax, NJ is slightly cheaper. But NJ has highest property taxes in US (2.23%), so homeowners may pay more.

Do I pay NY tax if I commute from NJ?

Yes, NY taxes non-resident income earned there. NJ gives credit for NY taxes paid.

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