New Jersey vs Pennsylvania: which really costs more?
Neighbors with different income tax designs and a heavily crossed border.
Both layers pull in the same direction here. Income tax and sales tax each differ by enough to matter, so the gap builds up twice rather than once. The purchase they disagree about most is home purchase. After that it is car purchase and then wedding. Everything below is sorted the same way, biggest gap first, so the things that barely differ sink to the bottom where they belong.
Neighbors with different income tax structures and a heavily-commuted border.
Both the income tax differential and the combined sales tax differential are material and same-signed, so the two layers compound rather than offset. Largest absolute divergence by category: home purchase. Then car purchase, then wedding.
New Jersey
- Income tax rate
- 1.4%–10.75%
- On a $75,000 salary
- 3.46%
- Rank of 51
- 27
- Combined sales tax
- 6.63%
- Rank of 51
- 30
Pennsylvania
- Income tax rate
- 3.07%
- On a $75,000 salary
- 3.07%
- Rank of 51
- 36
- Combined sales tax
- 6.34%
- Rank of 51
- 34
Beyond income and sales tax
A home costs more to keep in New Jersey, where property tax takes 2.11% of its value each year. In Pennsylvania it is 1.3%. Neither state taxes what you leave behind when you die. At the pump, Pennsylvania adds 58¢ 57.6¢ of state tax to every gallon. New Jersey adds 11¢ 10.5¢.
Effective property tax rate: about 2.11% of market value in New Jersey against about 1.3% in Pennsylvania — a holding cost the income and sales tax figures above do not capture. Neither levies an estate tax. State gasoline excise: 11¢ 10.5¢ per gallon in New Jersey, 58¢ 57.6¢ in Pennsylvania.
The income tax figure is what one person earning $75,000.00 pays to the state, as a share of that pay. The sales tax figure is the combined state and local rate. Both come from the same checked data the calculator uses.
Income tax is the effective state rate at $75,000 for a single filer, not a marginal rate. Sales tax is the combined state and local rate at each state's representative county where one is modeled, and a statewide average for the forty-five jurisdictions that carry no named county. Both figures come from the same verified datasets the calculator uses.
New Jersey against Pennsylvania
A $75,000 salary
| Measure | New Jersey | Pennsylvania |
|---|---|---|
| Take-home pay | $58,997 | $59,290 |
| Worth after local prices | $54,183 | $60,810 |
| Share of pay taxed | 21.34% | 20.95% |
| State sales tax | 6.63% | 6% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | Yes | Yes |
| Property tax rate | 2.11% | 1.3% |
| Price level | 108.9 | 97.5 |
| Housing prices | 134.1 | 85.8 |
| Fuel tax | 10.5¢ | 57.6¢ |
| Tobacco tax | $3.00 | $2.60 |
City income tax excluded. Sales-tax row: state-only. Exemptions: New Jersey, Statewide average; Pennsylvania, Statewide average. Clothing: one $100 item; higher prices can change tax.
Where each state is strong
A $75,000 salary
Further out is better on every axis. Axes use fixed national ranges, not the two states alone.
Where each state takes it
A $75,000 salary
- Income
- Sales
- Property
| Tax | New Jersey | Pennsylvania |
|---|---|---|
| Income, all levels | $16,004 | $15,710 |
| Sales, on that spending | $1,173 | $1,067 |
| Property, on that home | $4,221 | $2,602 |
Assumes 30% of take-home spent on taxable goods and a $200,000 home. Three bases, so never summed.
What gets taxed, in each
A $75,000 salary
New Jersey
Statewide average
Pennsylvania
Statewide average
- Sales tax
- Fuel
- Tobacco
| Category | New Jersey | Pennsylvania |
|---|---|---|
| Groceries | Exempt | Exempt |
| Clothing at $100 | Exempt | Exempt |
| Fuel | 10.5¢ | 57.6¢ |
| Tobacco | $3.00 | $2.60 |
Grocery and general rates use the locations named here. Clothing is one item priced at $100; a more expensive garment may be taxed differently. Fuel and tobacco have separate units and scales.
What you would need there
A $75,000 salary
| To match take-home only | $74,564 |
|---|---|
| You could take a cut of | −$9,461 |
| Prices in Pennsylvania | 98 vs 109 |
State taxes and state price levels only. No city tax, and no housing market.
What things actually cost in each
These are the amounts you would need to earn before tax to pay for each thing, at a $75,000.00 salary. Biggest gaps first.
Gross income required at $75,000, using each category's default assumptions, sorted by the absolute difference between the two states.
| Category | New Jersey | Pennsylvania | Difference |
|---|---|---|---|
| Home purchase | $1,459,841 | $1,239,020 | $220,821 cheaper in Pennsylvania |
| Car purchase | $144,503 | $137,056 | $7,447 cheaper in Pennsylvania |
| Wedding | $50,086 | $47,436 | $2,650 cheaper in Pennsylvania |
| Coffee habit | $27,393 | $25,992 | $1,401 cheaper in Pennsylvania |
| Used car from a private seller | $19,985 | $18,967 | $1,019 cheaper in Pennsylvania |
| Car payment or lease | $18,161 | $17,283 | $878 cheaper in Pennsylvania |
| Funeral | $12,491 | $11,891 | $600 cheaper in Pennsylvania |
| Phone plan | $10,756 | $10,241 | $515 cheaper in Pennsylvania |
| Jewelry | $5,820 | $5,532 | $288 cheaper in Pennsylvania |
| Rent | $2,800 | $2,675 | $125 cheaper in Pennsylvania |
| Pet annual cost | $2,567 | $2,447 | $120 cheaper in Pennsylvania |
| Furniture | $2,487 | $2,371 | $116 cheaper in Pennsylvania |
| Laptop or phone purchase | $1,987 | $1,897 | $90 cheaper in Pennsylvania |
| Major appliance | $1,820 | $1,739 | $81 cheaper in Pennsylvania |
| Sofa bed | $1,653 | $1,581 | $73 cheaper in Pennsylvania |
| Childcare | $1,706 | $1,635 | $71 cheaper in Pennsylvania |
| Mattress | $1,487 | $1,423 | $64 cheaper in Pennsylvania |
| Winter tires | $1,487 | $1,423 | $64 cheaper in Pennsylvania |
| Tires | $1,320 | $1,264 | $56 cheaper in Pennsylvania |
| Bicycle | $1,153 | $1,106 | $47 cheaper in Pennsylvania |
| Espresso machine | $1,153 | $1,106 | $47 cheaper in Pennsylvania |
| Hotel stay | $1,080 | $1,040 | $40 cheaper in Pennsylvania |
| Office chair | $987 | $948 | $39 cheaper in Pennsylvania |
| Theme park day | $836 | $803 | $33 cheaper in Pennsylvania |
| Air conditioner | $822 | $790 | $32 cheaper in Pennsylvania |
| Games console | $822 | $790 | $32 cheaper in Pennsylvania |
| Lawn mower | $740 | $711 | $29 cheaper in Pennsylvania |
| Back-to-school clothes | $771 | $743 | $28 cheaper in Pennsylvania |
| Camping gear | $699 | $672 | $27 cheaper in Pennsylvania |
| Power tools | $658 | $632 | $26 cheaper in Pennsylvania |
| Health insurance premium | $694 | $669 | $25 cheaper in Pennsylvania |
| Gift card | $617 | $595 | $23 cheaper in Pennsylvania |
| Student loan payment | $617 | $595 | $23 cheaper in Pennsylvania |
| Suit | $617 | $595 | $23 cheaper in Pennsylvania |
| Vacuum cleaner | $576 | $553 | $23 cheaper in Pennsylvania |
| School uniform | $555 | $535 | $20 cheaper in Pennsylvania |
| Vet visit | $555 | $535 | $20 cheaper in Pennsylvania |
| Cookware | $493 | $474 | $19 cheaper in Pennsylvania |
| Domestic flight | $506 | $487 | $18 cheaper in Pennsylvania |
| Luggage | $411 | $395 | $16 cheaper in Pennsylvania |
| Running shoes | $401 | $386 | $15 cheaper in Pennsylvania |
| Meal kit | $370 | $357 | $14 cheaper in Pennsylvania |
| Work uniform | $339 | $327 | $12 cheaper in Pennsylvania |
| Utilities | $324 | $312 | $12 cheaper in Pennsylvania |
| School supplies | $296 | $285 | $12 cheaper in Pennsylvania |
| Winter coat | $309 | $297 | $11 cheaper in Pennsylvania |
| Weekly groceries | $270 | $260 | $9.84 cheaper in Pennsylvania |
| Car insurance | $255 | $245 | $9.28 cheaper in Pennsylvania |
| Concert ticket | $225 | $216 | $8.72 cheaper in Pennsylvania |
| Grocery delivery | $219 | $211 | $8 cheaper in Pennsylvania |
| Storage unit | $201 | $193 | $7.32 cheaper in Pennsylvania |
| Birthday cake | $185 | $178 | $6.74 cheaper in Pennsylvania |
| Clothing | $185 | $178 | $6.74 cheaper in Pennsylvania |
| Restaurant dinner | $158 | $152 | $6.17 cheaper in Pennsylvania |
| Costume | $139 | $134 | $5.06 cheaper in Pennsylvania |
| Swimwear | $131 | $126 | $4.78 cheaper in Pennsylvania |
| Cannabis (legal states) | $109 | $105 | $3.99 cheaper in Pennsylvania |
| Internet service | $108 | $104 | $3.96 cheaper in Pennsylvania |
| Pet food | $99 | $95 | $3.87 cheaper in Pennsylvania |
| Sunscreen | $90 | $87 | $3.53 cheaper in Pennsylvania |
| Baby clothes | $85 | $82 | $3.08 cheaper in Pennsylvania |
| First aid supplies | $74 | $71 | $2.90 cheaper in Pennsylvania |
| Gym membership | $74 | $71 | $2.90 cheaper in Pennsylvania |
| Streaming bundle | $74 | $71 | $2.90 cheaper in Pennsylvania |
| Toiletries | $66 | $63 | $2.55 cheaper in Pennsylvania |
| Baby formula | $69 | $67 | $2.53 cheaper in Pennsylvania |
| Gas fill-up | $69 | $67 | $2.53 cheaper in Pennsylvania |
| Haircut | $65 | $62 | $2.36 cheaper in Pennsylvania |
| Pizza delivery | $62 | $59 | $2.34 cheaper in Pennsylvania |
| Food delivery | $59 | $56 | $2.24 cheaper in Pennsylvania |
| Vitamins and supplements | $58 | $55 | $2.24 cheaper in Pennsylvania |
| Dry cleaning | $62 | $59 | $2.23 cheaper in Pennsylvania |
| Deli sandwich | $54 | $52 | $2.14 cheaper in Pennsylvania |
| Books | $49 | $47 | $1.94 cheaper in Pennsylvania |
| Cinema ticket | $49 | $47 | $1.91 cheaper in Pennsylvania |
| Prescription refill | $46 | $45 | $1.69 cheaper in Pennsylvania |
| Rental car | $428 | $429 | $1.59 cheaper in New Jersey |
| Soft drinks | $39 | $38 | $1.55 cheaper in Pennsylvania |
| Coffee beans | $37 | $36 | $1.36 cheaper in Pennsylvania |
| Frozen meals | $34 | $33 | $1.23 cheaper in Pennsylvania |
| Rideshare trip | $34 | $33 | $1.23 cheaper in Pennsylvania |
| Over-the-counter medicine | $25 | $24 | $0.97 cheaper in Pennsylvania |
| Energy drinks | $23 | $22 | $0.89 cheaper in Pennsylvania |
| Candy | $20 | $19 | $0.79 cheaper in Pennsylvania |
| Fast food meal | $20 | $19 | $0.79 cheaper in Pennsylvania |
| Bread and bakery | $22 | $21 | $0.78 cheaper in Pennsylvania |
| Bar drink | $18 | $17 | $0.71 cheaper in Pennsylvania |
| Snack food | $19 | $18 | $0.67 cheaper in Pennsylvania |
| Cigarettes or vape | $15 | $14 | $0.58 cheaper in Pennsylvania |
| Bottled water | $15 | $15 | $0.55 cheaper in Pennsylvania |
| Bottled juice | $14 | $13 | $0.51 cheaper in Pennsylvania |
Across the 91 things we can price in both states, Pennsylvania comes out cheaper more often. That is not the whole story. Housing, wages and property tax move far more than sales tax does, and none of them are in these numbers. See limitations.
Across the 91 categories computable in both states, Pennsylvania is cheaper more often. ⚠️ This compares tax treatment alone: housing costs, prevailing wages and property tax vary far more between states than sales tax does, and none of them enter these figures. See limitations.
Questions people ask
Both of these tax income — so what actually separates them?
Degree rather than kind, which makes this a harder comparison than it looks. The effective income rates differ by about 0.39% here, and structure differs beyond that — where the brackets start, what is deducted first, and whether the schedule widens for a couple.
Do the different taxes point the same way for this pair?
Unusually, yes. Most pairs trade one tax against another; these two line up, which makes the comparison hold across very different spending patterns.
Is the difference between these two big enough to matter?
Probably not by itself. The gaps here are small enough that housing costs, salary differences and the price of moving would each outweigh them — tax is the easiest thing to compare between states and rarely the largest.
On what dimensions do two income-taxing states diverge?
Both states levy personal income tax, so divergence is in rate and structure rather than in existence. Effective rates differ by about 0.39% at this project's representative income; bracket thresholds, deduction levels and joint-filing treatment vary independently and can reverse the ordering at other income levels.
Do the levies rank these states consistently?
Both levies rank these states in the same direction, so the burden ordering is stable across consumption patterns rather than reversing at some spending share. ⚠️ Property tax is levied independently and is not included in that consistency; it can still reverse the total for a homeowner.
Is this differential material relative to other relocation costs?
Differentials between these states are narrow on both levies. Housing cost, nominal wage differences and transaction costs of relocation are typically an order of magnitude larger, so tax differentials of this size are unlikely to be decisive in isolation.