@
Musicman Good question. This is how ChatGPT breaks it down...
New York vs. New Jersey taxes (2026 levels):
🗽 New York Taxes
1⃣ New York State Income Tax
Progressive system:
4% to 10.9%
Most middle-income earners fall between 5.5% – 6.5%
Higher earners climb quickly above 8%
2⃣ NYC City Income Tax (Important!)
If you live in NYC, you pay an additional:
3.078% – 3.876%
This is on top of state tax.
👉 Example:
If you earn $100,000 and live in NYC:
~6% state tax
~3.5% city tax
= ~9.5% total income tax before federal
If you work in NYC but live outside NYC (NJ, Long Island, Westchester):
You pay NY State tax
❌ You do NOT pay NYC city tax
That’s a big savings.
3⃣ Property Taxes in NY
Varies widely
NYC property taxes are moderate
Upstate NY can be very high
Often 1.4%–2.5% of home value
🌉 New Jersey Taxes
1⃣ New Jersey State Income Tax
Also progressive:
1.4% to 10.75%
Most middle-income earners pay around 5%–6.37%
Very high earners pay more than NY in some brackets
2⃣ No Local City Income Tax
New Jersey does NOT have city income tax like NYC.
That’s why many people live in:
Jersey City
Hoboken
Bergen County
But commute to Manhattan.
3⃣ Property Taxes (Here’s the Catch 😬)
New Jersey has:
Among the highest property taxes in the U.S.
Average effective rate ~2.2%+
On a $400,000 home → could be $8,800+ per year
That’s often the trade-off.
🔎 If You Work in NYC but Live in NJ
You typically:
Pay NY State income tax (because income was earned there)
File a NJ return
NJ gives credit for taxes paid to NY
Avoid NYC city tax entirely
That saves roughly 3–4% of income.
💰 Simple Comparison (Middle Income Example)
$100,000 salary:
Scenario Approx Total State/Local Income Tax
Live in NYC ~$9,000–$10,000
Live in NY State (not NYC) ~$6,000
Live in NJ, work in NYC ~$6,000 (no city tax)
Property taxes are the big differentiator when buying.
