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InternetMedium4325 OP t1_iryw0wu wrote

Reply to comment by foot-trail in Tax savings of moving to JC from NYC by InternetMedium4325

Thank you, is there an equivalent NJ income tax?

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foot-trail t1_iryw9mi wrote

For now no, although there have been whispers of a 1% income tax. Regardless, it won't be 4% though. I spend a lot of time in NYC but was born and raised in Jersey, I'd live here regardless, but the 4% savings nice

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JCwhatimsayin t1_iryyeca wrote

I'm sitting here trying to do the math on how 4% of your salary is covering MOST of your rent!

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InternetMedium4325 OP t1_irywz7s wrote

Yeah that's no joke saving this much, good for you! I just accepted that a huge chunk of my paycheck goes to paying for the privilege of living in NYC...a sad realization haha.

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nycnola t1_is0rutf wrote

What rumors?

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foot-trail t1_is2ihz7 wrote

I don't recall specifically but it was being discussed last year, I think the BOE tax hike killed any of that discussion thought

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nycnola t1_is9tozn wrote

It was discussed in Reddit and promptly shut down.

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sutisuc t1_is19w4x wrote

They would have to amend the state law to establish a local income tax. I don’t see that happening any time soon.

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IamLars t1_irywaq1 wrote

No. JC has no city tax. Higher property taxes though. Life is also generally cheaper than in NYC.

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InternetMedium4325 OP t1_irywqdy wrote

Thanks for the insight. Yeah just checked my tax deductions and I pay $646 per month in NY income tax. That would be pretty incredible to save that much per month.

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protox88 t1_irywx6x wrote

Check again whether that's your STATE tax/withholding.

NYC city tax is usually called Yonkers City tax or just NYC city tax. It's around 3% of your gross income.

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InternetMedium4325 OP t1_iryxwwy wrote

Hmm, thanks. It just lists it as 'NY state income tax'. Will investigate this more.

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PostPostMinimalist t1_iryykcu wrote

Yeah that's just the state tax which is different. There should be an NYC tax or local tax additionally. I'd guess it'd be around ~$425/month given your state amount

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InternetMedium4325 OP t1_iryysht wrote

Ah gotcha, thanks! So is it just the NYC 3% local tax that you save on in NJ or is state income tax lower also?

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PostPostMinimalist t1_iryzca4 wrote

State income tax is a bit lower too, but not as much of a difference.

You know what's easiest, check it out:

https://smartasset.com/taxes/new-york-tax-calculator
https://smartasset.com/taxes/new-jersey-tax-calculator

Just put in retirement contributions and I believe it's pretty accurate

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Blecher_onthe_Hudson t1_irz5gzp wrote

Hey, I just added those links to the New Resident FAQ. Thanks. Question: I can't remember from when my wife worked in NYC, I know the state income taxes get credited to NJ, but what happens to the NYC tax, is it not even collected?

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PostPostMinimalist t1_irz66q2 wrote

Correct, NYC city tax is only collected if you live in NYC.

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bodhipooh t1_irzj8qz wrote

That’s only partly right. If you work for the City of NY, and were born after 01/04/1973, then you also have to pay the NYC income tax.

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Chilltopjc t1_is321m7 wrote

If your job is based in NY, you must pay NY State income tax. If you reside in NYC you must pay NYC income tax as well.

If you move to NJ but your job is based in NY, you must still pay NY State income tax, but not NYC tax.

When you file your tax return, you’ll file in NYS as a nonresident. You must also file in NJ. But NJ will give you a credit for taxes paid to another state. NJ also gives you a break for property taxes paid on your home or rent paid. So I usually end up close to “break even” (meaning I don’t owe more or get much back than I had withheld for NYS income tax throughout the year).

If your job moves to NJ you’ll just file in NJ and pay NJ income tax.

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