Side-by-side tax comparison between New Jersey (10.75% top rate, graduated) and Pennsylvania (3.07% top rate, flat). 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 Pennsylvania has a flat system (3.07% flat + local). On a $100K salary, New Jersey takes $6,988 in state and local taxes compared to Pennsylvania’s $3,070 \u2014 a difference of $3,918.
Because New Jersey has graduated brackets while Pennsylvania is flat, the gap between them changes at different income levels. New Jersey’s rates increase with income, so high earners feel the difference more acutely.
Pennsylvania also has local income taxes (estimated at $0/year on $100K), which New Jersey does not.
Pennsylvania wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | New Jersey | Pennsylvania | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,525 | $33,092 | +$1,567 | Pennsylvania |
| $50K | $38,861 | $40,820 | +$1,959 | Pennsylvania |
| $60K | $46,198 | $48,548 | +$2,351 | Pennsylvania |
| $75K | $56,297 | $59,235 | +$2,938 | Pennsylvania |
| $100K | $72,138 | $76,055 | +$3,918 | Pennsylvania |
| $120K | $84,810 | $89,511 | +$4,701 | Pennsylvania |
| $150K | $103,270 | $109,146 | +$5,876 | Pennsylvania |
| $200K | $134,912 | $142,747 | +$7,835 | Pennsylvania |
| $250K | $165,795 | $175,589 | +$9,794 | Pennsylvania |
| $300K | $194,366 | $206,119 | +$11,753 | Pennsylvania |
Take-home pay only tells part of the story. New Jersey has a cost of living index of 115 while Pennsylvania is at 98 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in New Jersey has purchasing power of $62,728 compared to $77,607 in Pennsylvania. Pennsylvania 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 $77,723 in New Jersey and $81,640 in Pennsylvania \u2014 a difference of $3,918. The gap remains similar regardless of filing status.
On paper, moving from New Jersey to Pennsylvania would save $3,918/year on a $100K salary, or $19,588 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,918/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.