Live in Pennsylvania, work in New Jersey
State income tax on wages · single filer · tax year 2026
New Jersey takes
$0
on wages earned there
Pennsylvania takes
$1,842
after the credit it gives
Both together
$1,842
state tax for the year
Cost of the line
$0
a year, above working at home
What crossing the line costs
agreementNew Jersey does not tax you at all — the two states have an agreement, and you file a certificate with your employer. Solid is what you actually pay; the faded part of the Pennsylvania bar is the credit it hands back. State income tax only — federal and payroll tax apply on top, and a city wage tax may too.
Which state taxes you, and what it costs
- These two states have a deal. New Jersey agrees not to tax people who live in Pennsylvania, so only Pennsylvania taxes your pay. That comes to $1,842 for the year. There is one form standing between you and that result: give your employer the non-residence certificate, named beside this page, and New Jersey stops taking anything out. Skip it and money comes out all year that you then have to claim back.
- Plenty of states feed workers into New Jersey — 5 of them at this scale. Pennsylvania is number 2, with 159,087 jobs. You will not be the first person at your employer to have filed as an out-of-state worker.
- Pennsylvania and New Jersey hold a reciprocity agreement covering wages, so New Jersey does not tax this commuter at all and no resident credit is needed. The commuter files the work state's non-residence certificate with the employer — it is named in the panel beside this page — which stops New Jersey withholding at source, and owes Pennsylvania alone — $1,842 at the reference salary, identical to an earner who never crosses the line. ⚠️ The agreement covers WAGES. Other income sourced to New Jersey is outside it, and an employee who does not file the certificate has New Jersey tax withheld and must reclaim it on a non-resident return.
- New Jersey draws commuters of this scale from 5 states, and Pennsylvania ranks number 2 among them with 159,087 jobs. A work state pulling from that many directions tends to have a well-established non-resident filing routine, which is a practical convenience rather than a tax saving.
Where the money goes
A $75,000 salary
- Federal income tax$7,670
- Social Security and Medicare$5,738
- State income tax$2,303
- Yours$59,290
| Federal income tax10.23% | $7,670 |
|---|---|
| Social Security and Medicare7.65% | $5,738 |
| State income tax3.07% | $2,303 |
| Yours79.05% | $59,290 |
Which rung you are on
A $75,000 salary
| This rung starts at | $66,500 |
|---|---|
| Next rung starts at | $121,800 |
| Room before it | $46,800 |
Federal only, measured on gross pay — so the first rung is what the standard deduction covers.
The arithmetic, step by step
| New Jersey takes, on wages earned there | $0 |
|---|---|
| Pennsylvania charges its residents | $1,842 |
| Less the credit Pennsylvania gives | $0 |
| Total state tax | $1,842 |
| If you also worked in Pennsylvania | $1,842 |
| Difference | $0 |
On a reference salary of $60,000 a year, single filer. Both states run progressive schedules, so the figures do not simply scale — use the tool above for your own salary.
What this page does not cover
- City wage taxes are not in these numbers. A few places charge them, and where they do the money is real. If your job in New Jersey is inside a city that taxes workers, add that on top. Where it is not, the state figures above are the whole of it for Pennsylvania residents.
- Two assumptions sit under this page. First, that New Jersey is where all your pay comes from. Second, that you go there rather than working from your kitchen in Pennsylvania. Mixed income changes how the credit is worked out, and remote days have their own rules in some states.
- The dollars rest on one assumed salary of sixty thousand. Double your pay and they do not simply double, because both states charge more on higher slices of income. What tends to stay put is which side of the Pennsylvania and New Jersey comparison you are on.
- These figures cover the STATE layer only. City and municipal wage taxes sit on top of them and are not included: a commuter into Philadelphia pays its wage tax on top of anything here, and Ohio's municipalities run their own credit system, which this site models in its own families. New York City, by contrast, taxes only its residents, so a commuter into it adds nothing at the city level. Whether New Jersey or Pennsylvania carries a local layer is a separate question from the state arithmetic above.
- The arithmetic assumes all wages are earned in New Jersey and that there is no other income. That matters for the credit: where income comes from several states, Pennsylvania limits the credit to the share of its own tax attributable to the New Jersey portion, computed as a ratio rather than the straightforward cap used above. It also assumes days are worked in New Jersey rather than remotely — several states tax a non-resident's remote days as though they were worked at the employer's location, which reverses the usual expectation and is handled on this site's reciprocity pages.
- Dollar amounts are computed at a stated reference salary of sixty thousand rather than a corridor wage average, which no published source provides per state pair. Because both states' liabilities and the credit between them are functions of the same income, the direction of the Pennsylvania to New Jersey comparison holds at other salaries even though the amounts do not — with one qualification worth stating, that a progressive schedule can change the SIZE of the gap at higher incomes, and in New Jersey's case a bracket crossed on one side and not the other is exactly where that happens.
Questions people ask
Do I pay state tax twice, to Pennsylvania and New Jersey?
You file in both states, but you do not pay the full amount to both. Pennsylvania credits the tax New Jersey collected, capped at its own charge on that income. The practical result is one bill at the higher of the two levels: $1,842 for the year.
Does working in New Jersey cost me anything extra?
No. The state line is real on a map and invisible on your pay stub here. Your total is $1,842 either way. Keep the paperwork in mind though: crossing a line usually means filing twice even when it changes nothing.
What do I give my employer so New Jersey stops taking tax?
A single form, filed with your employer rather than with either state. It tells them you live in Pennsylvania and that New Jersey has agreed not to tax you, so they stop withholding New Jersey tax from your pay. Without it the money comes out all year and you have to claim it back on a return you would not otherwise file.
Do I have to file tax returns in both Pennsylvania and New Jersey?
Two returns is the normal outcome here, even when only one state ends up taking anything. New Jersey generally wants to see a non-resident return from people who work there, and Pennsylvania wants your whole picture. It is paperwork rather than extra tax.
What if I work from home in Pennsylvania some days instead of going to New Jersey?
It depends on the state, and the answer is not the one most people expect. You might assume a day worked at your kitchen table in Pennsylvania is taxed by Pennsylvania. Usually that is right, and your New Jersey share shrinks to the days you were actually there. But a few states tax days you work at home as though you had been in the office, unless your employer required you to be elsewhere. It is worth checking which kind New Jersey is before assuming.
How is liability allocated between residence and work state on the same wages?
Both jurisdictions assert a claim on the same wages — New Jersey on a source basis, Pennsylvania on residence. The residence state grants a credit for tax paid to the source state, limited to the residence state's own liability on that income. Net combined liability therefore equals the greater of the two liabilities rather than their sum, $1,842 at the reference salary, and the split between the two treasuries is the only thing the credit changes.
Why is the marginal state-tax cost of this crossing zero?
Marginal cost is zero because the binding liability is the residence state's. Pennsylvania's own charge on this income equals or exceeds New Jersey's, so the resident credit absorbs the source-state tax entirely and combined liability equals residence-only liability, $1,842. ⚠️ Zero marginal tax is not zero obligation: a non-resident return may still be required in New Jersey.
What administrative step gives effect to the reciprocity exemption?
The exemption is self-executing only on filing: the employee furnishes the work state's non-residence certificate to the employer, which relieves the employer of the obligation to withhold New Jersey tax. Absent the certificate the employer withholds, and the employee recovers the amount by filing a New Jersey non-resident return — the liability position is identical, the cash-flow position is not.
What filing obligations arise in each state on this corridor?
Generally two. Pennsylvania requires a resident return reporting all income; New Jersey requires a non-resident return reporting the income sourced to it, which is also the mechanism by which the resident credit is substantiated. ⚠️ A filing obligation is distinct from a liability: a reciprocity exemption or a zero net position removes tax without necessarily removing the return, and the non-resident return is frequently what establishes the credit claimed on the resident one.
How do remote working days affect sourcing between these two states?
Ordinarily wages are sourced to where the services are performed, so days worked remotely from Pennsylvania fall outside New Jersey's jurisdiction and the source-state apportionment shrinks accordingly. ⛔ The exception is the "convenience of the employer" rule, which several states apply: a non-resident's remote days are sourced to the employer's location unless the remote work is required by the employer rather than chosen by the employee. The figures on this page model in-person attendance in New Jersey throughout.