Live in NJ, Work in NYC: How Your Taxes Work in 2026
If you live in New Jersey and work in New York City, your paycheck carries New York State income tax on all of your wages and no NYC income tax, which only city residents pay. New Jersey taxes the same wages and gives you a credit for the tax paid to New York, so you owe New Jersey only the part of its tax the credit does not cover.
On a $100,000 salary with no pre-tax deductions, the New York State tax for the year is $4,860.65 and New Jersey's is $4,182, so the credit covers it and nothing more is due when you file.
Take-home pay per paycheck
$2,839.30
$73,842.07a year
Enter your salary to see your take-home pay.
- Effective tax rate
- 26.2%
- Marginal tax rate
- 35.6%
Based on 2026 IRS and New York State withholding tables.
Paycheck breakdown
| Line | Per paycheck | Per year |
|---|---|---|
| Gross pay | $3,846.15 | $100,000.00 |
| Federal income tax | $506.54 | $13,170.06 |
| Social Security | $238.46 | $6,199.97 |
| Medicare | $55.77 | $1,450.02 |
| New York State income tax | $188.26 | $4,894.77 |
| New Jersey income tax | $0.00 | $0.00 |
| NY disability insurance (SDI) | $1.20 | $31.20 |
| NY Paid Family Leave | $16.62 | $411.91 |
| Take-home pay | $2,839.30 | $73,842.07 |
New Jersey vs New York City on the same pay
| Line | Live in New Jersey | Live in New York City |
|---|---|---|
| New York State tax withheld | $4,894.77 | $4,894.77 |
| New York City tax withheld | $0.00 | $3,723.20 |
| New Jersey tax withheld | $0.00 | $0.00 |
| New Jersey tax due at filing | $0.00 | $0.00 |
| Take-home per paycheck | $2,839.30 | $2,696.10 |
| Take-home a year | $73,842.07 | $70,118.87 |
Living in New Jersey leaves $3,723.20 more take-home a year than living in New York City. Nothing more is due to New Jersey when you file your return.
Where your paycheck goes
- Take-home pay$2,839.3073.8%
- Federal income tax$506.5413.2%
- Social Security and Medicare$294.237.6%
- New York State income tax$188.264.9%
- SDI and Paid Family Leave$17.820.5%
Paychecks through 2026
- Paychecks 1 to 24 come to $2,839.30 each.
- On paycheck 25 Paid Family Leave reaches its $411.91 yearly maximum, so take-home rises to $2,842.89.
- On paycheck 26 Paid Family Leave stops for the year and gross pay is 10 cents higher, bringing the year to the exact salary, so take-home rises to $2,855.98.
Rent you can qualify for
$2,500a month
NYC landlords ask for a yearly income of at least 40 times the monthly rent, so this is the most they approve on this pay.
What is withheld and what you owe New Jersey at filing
Your New York employer withholds New York State tax as if you lived in the state, and no NYC tax. It withholds New Jersey tax only if it is registered to, and then only the amount by which New Jersey's withholding would be higher than New York's; if it is not, you pay New Jersey through quarterly estimated payments on Form NJ-1040-ES. You file two returns: a New York nonresident return (Form IT-203) and a New Jersey resident return (Form NJ-1040), where Schedule NJ-COJ claims the credit.
Payroll contributions follow where you work: New York SDI and Paid Family Leave come out of your pay, and New Jersey's unemployment, disability and family leave contributions do not.
The year's figures for salaries from $60,000 to $250,000, for a single filer with no pre-tax deductions whose employer withholds for New Jersey:
| Salary | New York State tax for the year | New Jersey tax for the year | Credit for NY tax | Withheld for NJ | Due at filing |
|---|---|---|---|---|---|
| $60,000 after taxes | $2,643.40 | $1,769.00 | $1,769.00 | $0.00 | $0.00 |
| $80,000 after taxes | $3,723.40 | $2,908.00 | $2,908.00 | $0.00 | $0.00 |
| $100,000 after taxes | $4,860.65 | $4,182.00 | $4,182.00 | $0.00 | $0.00 |
| $150,000 after taxes | $8,290.90 | $7,365.05 | $7,365.05 | $0.00 | $0.00 |
| $250,000 after taxes | $15,946.62 | $13,735.05 | $13,735.05 | $0.00 | $0.00 |
Pre-tax deductions New Jersey taxes
New Jersey excludes only a traditional 401(k) from wages. It taxes 403(b) and 457(b) contributions, health, dental and vision premiums, HSA and FSA contributions, dependent care and transit benefits, all of which New York leaves out. The credit covers only income both states tax, so the New Jersey tax on that money is never offset, and it is often due when you file even though nothing was withheld for it.
On a $100,000 salary, taking $150 for health premiums and $100 for transit out of each paycheck removes $6,500 a year from New York income but none from New Jersey's. New Jersey's tax stays at $4,182 while the credit falls from $4,182 to $3,910.17, so $271.83 of New Jersey tax is left after the credit: $176.02 through withholding if your employer withholds for New Jersey, and $95.81 when you file.
| Deductions | NJ gross income | NJ tax | Credit for NY tax | Withheld for NJ | Due at filing |
|---|---|---|---|---|---|
| No pre-tax deductions | $100,000.00 | $4,182.00 | $4,182.00 | $0.00 | $0.00 |
| 5% to a 401(k) | $94,999.94 | $3,860.00 | $3,860.00 | $0.00 | $0.00 |
| 5% to a 403(b) | $100,000.00 | $4,182.00 | $3,972.90 | $87.37 | $121.73 |
| $150 health premiums and $100 transit a paycheck | $100,000.00 | $4,182.00 | $3,910.17 | $176.02 | $95.81 |
Connecticut residents do not have this gap: Connecticut starts from federal wages, so every pre-tax deduction New York leaves out, Connecticut leaves out too.
Working from home: the convenience of the employer rule
New York taxes a nonresident's pay for the days worked in New York. Days you work from home in New Jersey still count as New York days when you work at home for your own convenience rather than because your employer needs you there, so a hybrid schedule usually leaves your whole salary taxed by New York.
When your employer requires work to be done outside New York, those days come out of New York's share: give your employer Form IT-2104.1 with the percentage of your work done in New York, and New York State tax is withheld on that share of your pay.