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ForeignMate t1_ivmctww wrote

Aqui señor:

https://www.talent.com/tax-calculator/New+Jersey-85000

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flapjack212 t1_ivmqaqx wrote

i have never seen a calculator that does what you're asking for but the one being listed above is virtually useless for that purpose

if you are trying to do it at a high level, just consider the savings to be the 3% NYC city tax

if you want to do it more accurately you should just use turbotax or manually fill out both states' tax forms. the tax rates are slightly different, NJ only lets you claim a certain portion of the NY tax paid as credit, and NJ does not consider certain things as deductible that federal and NY do (HSA and 529 for example)

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bodhipooh t1_ivon1o1 wrote

Not accurate at all! It's not just the NYC income tax! The NYS income tax for non-residents is still HIGHER than NJ state income tax, and all of it is credited in your filing. Definitely lower tax bill if you work and reside in NJ. When my company closed our NYC office during the pandemic and reallocated employees to a NJ entity, we all got a bump in take home pay because income tax withholding dropped due to NJ having lower income taxes. It was like getting a small pay raise.

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sutisuc t1_ivp5qyt wrote

This is true with the caveat that if you are an especially high income earner you pay more in NJ than you do in NYS, but if you’re a low to middle income earner it’s cheaper in NJ.

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MulberryMak t1_ivq37gj wrote

What’s the threshold, where that becomes true? Like what’s the income cap?

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ffejie t1_ivr76ez wrote

I've looked at this a few times, and while I haven't run the numbers specifically, I don't think this is true. There does not appear to be an income level where living in NYC is cheaper than living in NJ. This is assuming you work in NYC in both cases, but I also believe it is true if you live and work in NJ.

I'm interested in being shown I'm wrong though, can you show us some math?

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sutisuc t1_ivr7fcz wrote

NYS not NYC.

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ffejie t1_ivr7jmp wrote

Ah thanks - I missed that. Yes, NYS can be a bit cheaper for high earners than NJ.

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foot-trail t1_ivmx4hi wrote

4% NYC city tax*

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jordandw22 t1_ivrfkj3 wrote

is the NYC tax supposed to be applied on every paycheck or is it assessed at filing? wasn't showing up on my employee tax breakdown on paystubs

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