Who pays what
You are a New York nonresident for city purposes, so the NYC resident income tax does not apply to you. New York State still taxes the wages you earn in New York, because the tax follows where the work is performed.
The practical effect: your take-home is higher than a New York City resident on the same salary, by exactly the amount of the city tax.
Take-home pay in NYC compared with outside the city
Both columns are calculated with the same federal, New York State and FICA rules. The only difference is the New York City resident layer. Single filer, standard deductions, no pre-tax contributions, bi-weekly pay.
| Salary | Net / check in NYC | Net / check outside NYC | Extra per year |
|---|---|---|---|
| $75,000 | $2,141.05 | $2,236.13 | $2,472 |
| $100,000 | $2,726.12 | $2,858.47 | $3,441 |
| $125,000 | $3,306.10 | $3,475.72 | $4,410 |
| $150,000 | $3,869.31 | $4,076.20 | $5,379 |
This models the New York side only. Your home state’s tax and the credit it gives for New York tax are a separate calculation.
Run your own numbers
The New York State paycheck calculator has the New York City layer switched off, which is the correct setting for a New Jersey commuter. Enter your salary, pay frequency, filing status and any pre-tax contributions such as a 401(k) or transit benefit.
You can also check what your salary looks like in the salary library or work out the gross pay you need in the salary needed calculator.
Commuter tax questions
Do I pay New York City income tax if I live in New Jersey?+−
No. The NYC resident income tax applies to people who live in the five boroughs. Living outside the city means the city layer is removed from your wages even though your office is in Manhattan.
Does New York still tax my wages?+−
Yes. New York taxes income earned from work performed in New York, regardless of where the employee lives. You file a New York nonresident return and pay New York State tax on those wages.
Will New Jersey tax the same income as well?+−
New Jersey taxes its residents on all income but gives a credit for income tax paid to other jurisdictions, so the New York tax withheld from your paycheck is not simply added on top of a New Jersey bill.
How much more do I take home than a city resident on the same salary?+−
The difference is exactly the New York City resident tax, which runs from 3.078% to 3.876% of New York taxable income. The table above shows the gap at four common salaries for a single filer with no pre-tax deductions.
Do I need to file more than one state return?+−
Usually yes. You file a New York nonresident return for the wages earned in New York and a resident return in your home state, claiming a credit for the tax paid to New York. That is why the two tax bills are not simply added together.