New Jersey → Pennsylvania
How much could you save by moving from New Jersey (1.4% – 10.75%) to Pennsylvania (3.07% flat)? See the full tax comparison below.
Tax Savings by Income Level
| Income | New Jersey Total Tax | Pennsylvania Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $15,468 | $15,505 | +$38 |
| $100,000 | $24,339 | $23,685 | Save $654 |
| $150,000 | $42,967 | $40,663 | Save $2,304 |
| $200,000 | $60,496 | $56,542 | Save $3,954 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $654/year ($55/month) in Pennsylvania vs New Jersey.
Tax structure
New Jersey uses progressive brackets up to 10.8%, while Pennsylvania has a flat 3.1% state income tax.
Effective rate at your income
At $100,000, Pennsylvania's effective state rate is 2.6% vs 3.2% in New Jersey — a 0.7 percentage point gap.
Pennsylvania local taxes
Many Pennsylvania municipalities levy an earned income tax (typically 1-3%); Philadelphia wage tax is 3.75% for residents.
Tip: New Jersey's combination of high income tax and nation-leading property taxes creates a substantial tax burden. If you work in NYC, note that NJ residents receive a credit for taxes paid to NY, but the NJ/NYC tax interaction can be complex — ensure proper credit on your NJ return.
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
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Understanding Each State
New Jersey
New Jersey has progressive income tax brackets reaching 10.75% on income over $1 million. Combined with property taxes that are the highest in the US (average 2.23% of home value), New Jersey has one of the heaviest overall tax burdens nationally. However, NJ does not tax Social Security benefits.
Tip: New Jersey's combination of high income tax and nation-leading property taxes creates a substantial tax burden. If you work in NYC, note that NJ residents receive a credit for taxes paid to NY, but the NJ/NYC tax interaction can be complex — ensure proper credit on your NJ return.
Pennsylvania
Pennsylvania has a flat income tax rate of 3.07% — one of the lowest flat rates in the US. Some municipalities levy an additional earned income tax (typically 1-3%), and Philadelphia residents pay a 3.75% wage tax. PA does not tax retirement income (401k, IRA, Social Security).
Tip: PA's low flat rate benefits high earners, but the Philadelphia wage tax adds significantly for city workers. If you live outside Philadelphia but work in the city, the non-resident wage tax is 3.44%. PA's exemption of retirement income makes it attractive for retirees.
Related Resources
Frequently asked questions
How much can I save moving from New Jersey to Pennsylvania?
At $100,000 income (single filer), you could save $654 per year in combined taxes by moving from New Jersey to Pennsylvania. The actual savings depend on your income, filing status, and whether you own property.
Do I have to file taxes in New Jersey if I move to Pennsylvania?
If you move mid-year, you may need to file a part-year resident return in New Jersey and a part-year or full-year return in Pennsylvania. Establish your new domicile (driver's license, voter registration, etc.) to clearly document the move date.
What taxes should I compare besides income tax?
Beyond state income tax, compare property tax rates, sales tax, and any special taxes (e.g., estate tax, capital gains surtax). States with no income tax often have higher property or sales taxes that partially offset the savings.