Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-11-2008, 08:03 PM
Junior Member
 
Join Date: Sep 2008
Posts: 1
Live in NJ Work in NY Income tax difference??

Hello,

I live in NJ and have always worked in NJ. I am considering a job in NY state. I hear that NY has a higher tax base. I'm trying to find out if I will ultimately pay much more in state taxes while living in NJ and working in NY. Any help would be appreciated. Thanks
Kevin



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 09-12-2008, 11:59 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
It all depends on your unique circumstances, your deductions, and mainly your taxable income. However, please review the tax rates for both States below and hopefully these will help you to gain a better understanding of your potential State tax liabilities.

NEW YORK INDIVIDUAL TAX RATE
For the Tax Year 2008, New York State has 5 tax rate brackets, with a rate of 4.0% at the lowest end and 6.85% at the highest rate.

NEW JERSEY INDIVIDUAL TAX RATE
For the Tax Year 2008, New Jersey State has 6 tax rate brackets, with a rate of 1.4% at the lowest end and 8.97% at the highest rate.

But, beware, that if you work in New York City, you could also be subject to another layer of NYC Taxes, on top of the regular NY State Taxes. This typically can be about 1%.

Nevertheless, I don't think that the difference should be more than 3% of your Gross Income. But, the pay scale in NYC can definitely be more than 5%-10% of the NJ Pay scale. So, all in all, you would most probably come ahead working in NY.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
I work in NY and live in NJ, do I have to pay NJ tax on NY income? Robbie Miscellaneous 2 03-05-2009 12:00 PM
work food deductions rmccoo567 Itemized Deductions 0 02-21-2008 07:29 AM
How does one go about filing an extension? I live in NJ state & don't owe any money. Tertard Sole-Proprietorship 0 04-18-2007 09:01 AM
What is the difference between a tax credit and a tax deduction?What's more valuable? altonkil Miscellaneous 1 03-27-2007 09:17 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.