Side-by-side tax comparison between Massachusetts (5% top rate, flat) 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.
Massachusetts uses a flat income tax (5% flat + 4% surtax >$1M) while New Jersey has a graduated system (1.4-10.75%). On a $100K salary, Massachusetts takes $5,000 in state and local taxes compared to New Jersey’s $6,988 \u2014 a difference of $1,988.
Because Massachusetts has flat brackets while New Jersey is graduated, the gap between them changes at different income levels. Massachusetts’s flat rate is predictable, while New Jersey’s graduated brackets may benefit lower earners but penalize higher incomes.
Massachusetts wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Massachusetts | New Jersey | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,320 | $31,525 | −$795 | Massachusetts |
| $50K | $39,855 | $38,861 | −$994 | Massachusetts |
| $60K | $47,390 | $46,198 | −$1,193 | Massachusetts |
| $75K | $57,788 | $56,297 | −$1,491 | Massachusetts |
| $100K | $74,125 | $72,138 | −$1,988 | Massachusetts |
| $120K | $87,195 | $84,810 | −$2,385 | Massachusetts |
| $150K | $106,251 | $103,270 | −$2,981 | Massachusetts |
| $200K | $138,887 | $134,912 | −$3,975 | Massachusetts |
| $250K | $170,764 | $165,795 | −$4,969 | Massachusetts |
| $300K | $200,329 | $194,366 | −$5,963 | Massachusetts |
Take-home pay only tells part of the story. Massachusetts has a cost of living index of 118 while New Jersey is at 115 (national average = 100).
With similar costs of living (118 vs 115), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $62,818 in Massachusetts vs $62,728 in New Jersey.
For a single earner at $100K filing jointly, take-home becomes $79,710 in Massachusetts and $77,723 in New Jersey \u2014 a difference of $1,988. The gap remains similar regardless of filing status.
On paper, moving from New Jersey to Massachusetts would save $1,988/year on a $100K salary, or $9,938 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,988/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.