Side-by-side tax comparison between Alaska (no income tax) and New Jersey (10.75% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Alaska has no state income tax, while New Jersey uses a graduated system with rates of 1.4-10.75%. On a $100K salary, this creates a state tax difference of $6,988/year that Alaska residents simply don’t pay.
New Jersey’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $13,975/year, while at $50K it’s only $3,494.
Alaska wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Alaska | New Jersey | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $31,525 | −$2,795 | Alaska |
| $50K | $42,355 | $38,861 | −$3,494 | Alaska |
| $60K | $50,390 | $46,198 | −$4,193 | Alaska |
| $75K | $61,538 | $56,297 | −$5,241 | Alaska |
| $100K | $79,125 | $72,138 | −$6,988 | Alaska |
| $120K | $93,195 | $84,810 | −$8,385 | Alaska |
| $150K | $113,751 | $103,270 | −$10,481 | Alaska |
| $200K | $148,887 | $134,912 | −$13,975 | Alaska |
| $250K | $183,264 | $165,795 | −$17,469 | Alaska |
| $300K | $215,329 | $194,366 | −$20,963 | Alaska |
Take-home pay only tells part of the story. Alaska has a cost of living index of 127 while New Jersey is at 115 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $62,303 in Alaska vs $62,728 in New Jersey. However, New Jersey actually provides better purchasing power despite Alaska’s take-home advantage.
For a single earner at $100K filing jointly, take-home becomes $84,710 in Alaska and $77,723 in New Jersey \u2014 a difference of $6,988. The gap remains similar regardless of filing status.
On paper, moving from New Jersey to Alaska would save $6,988/year on a $100K salary, or $34,938 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
With an annual savings of $6,988, the tax difference alone is significant enough to justify a move for many people — especially if career opportunities are comparable. At higher salaries, the savings grow even larger: a $200K earner would save $13,975/year.