Side-by-side tax comparison between Minnesota (9.85% top rate, graduated) 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.
Minnesota uses a graduated income tax (5.35-9.85%) while New Jersey has a graduated system (1.4-10.75%). On a $100K salary, Minnesota takes $6,402 in state and local taxes compared to New Jersey’s $6,988 \u2014 a difference of $585.
Both states use graduated brackets, but New Jersey’s top rate of 10.75% is higher than Minnesota’s 9.85%.
Minnesota wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Minnesota | New Jersey | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,759 | $31,525 | −$234 | Minnesota |
| $50K | $39,154 | $38,861 | −$293 | Minnesota |
| $60K | $46,549 | $46,198 | −$351 | Minnesota |
| $75K | $56,736 | $56,297 | −$439 | Minnesota |
| $100K | $72,723 | $72,138 | −$585 | Minnesota |
| $120K | $85,512 | $84,810 | −$702 | Minnesota |
| $150K | $104,147 | $103,270 | −$878 | Minnesota |
| $200K | $136,082 | $134,912 | −$1,170 | Minnesota |
| $250K | $167,258 | $165,795 | −$1,463 | Minnesota |
| $300K | $196,121 | $194,366 | −$1,755 | Minnesota |
Take-home pay only tells part of the story. Minnesota has a cost of living index of 99 while New Jersey is at 115 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Minnesota has purchasing power of $73,457 compared to $62,728 in New Jersey. Minnesota wins on both raw take-home and cost-adjusted purchasing power, making it the clear winner for a $100K earner.
For a single earner at $100K filing jointly, take-home becomes $78,308 in Minnesota and $77,723 in New Jersey \u2014 a difference of $585. The gap remains similar regardless of filing status.
On paper, moving from New Jersey to Minnesota would save $585/year on a $100K salary, or $2,925 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $585/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.