Side-by-side tax comparison between New Jersey (10.75% top rate, graduated) and New York (10.9% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
New Jersey uses a graduated income tax (1.4-10.75%) while New York has a graduated system (4-10.9% + NYC local). On a $100K salary, New Jersey takes $6,988 in state and local taxes compared to New York’s $7,085 \u2014 a difference of $98.
Both states use graduated brackets, but New York’s top rate of 10.9% is higher than New Jersey’s 10.75%.
New York also has local income taxes (estimated at $0/year on $100K), which New Jersey does not.
New Jersey wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | New Jersey | New York | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,525 | $31,486 | −$39 | New Jersey |
| $50K | $38,861 | $38,813 | −$49 | New Jersey |
| $60K | $46,198 | $46,139 | −$59 | New Jersey |
| $75K | $56,297 | $56,224 | −$73 | New Jersey |
| $100K | $72,138 | $72,040 | −$98 | New Jersey |
| $120K | $84,810 | $84,693 | −$117 | New Jersey |
| $150K | $103,270 | $103,124 | −$146 | New Jersey |
| $200K | $134,912 | $134,717 | −$195 | New Jersey |
| $250K | $165,795 | $165,552 | −$244 | New Jersey |
| $300K | $194,366 | $194,074 | −$293 | New Jersey |
Take-home pay only tells part of the story. New Jersey has a cost of living index of 115 while New York is at 125 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $62,728 in New Jersey vs $57,632 in New York. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $77,723 in New Jersey and $77,625 in New York \u2014 a difference of $98. The gap remains similar regardless of filing status.
On paper, moving from New York to New Jersey would save $98/year on a $100K salary, or $488 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $98/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.