PostPostMinimalist t1_iryykcu wrote on October 12, 2022 at 2:01 AM

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

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

InternetMedium4325 OP t1_iryysht wrote on October 12, 2022 at 2:03 AM

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?

PostPostMinimalist t1_iryzca4 wrote on October 12, 2022 at 2:07 AM

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

Blecher_onthe_Hudson t1_irz5gzp wrote on October 12, 2022 at 2:58 AM

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?

PostPostMinimalist t1_irz66q2 wrote on October 12, 2022 at 3:04 AM

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

bodhipooh t1_irzj8qz wrote on October 12, 2022 at 5:13 AM

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.

InternetMedium4325 OP t1_iryzhkc wrote on October 12, 2022 at 2:09 AM

Oh this is awesome, thanks so much!!!

Chilltopjc t1_is321m7 wrote on October 12, 2022 at 11:00 PM

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.