I live in NJ and work in NY (not in the city). I've read a lot that I shouldn't have to pay much in state taxes in NJ because the NY tax rate is slightly higher. I'm in the NJ bracket of 6.37% and I believe the NY bracket is 6.85%. However, filing jointly with my spouse who works in NJ, and using Turbo Tax, it seems I'm only getting partial credit for the taxes I paid in NY - I think around 60% credit. Why is this? Am I doing something wrong?