2026 tax year · cross-border wages
Crossing a state line into or out of New Jersey
New Jersey taxes its residents on income earned anywhere, and taxes non-residents on work done inside it. Which return you file depends on which direction you commute.
New Jersey borders 3 states. They fall into 2 different situations, and which one applies decides whether you file one return or two.
Where New Jersey has a reciprocity agreement
New Jersey has wage reciprocity with Pennsylvania. Work in one of these and it will not tax your wages at all: you file its exemption certificate with your employer there, which stops its withholding, and report everything to New Jersey. There is no nonresident return.
| Work state | Exemption certificate | Its tax on your wages |
|---|---|---|
| Pennsylvania | REV-419 | $0 |
Reciprocity covers wages paid by an employer. It does not cover self-employment income, so a 1099 worker in New Jersey generally still sources income to where the work was done.
Where you file a nonresident return and claim a credit
New Jersey has no agreement with Delaware and New York. Work in one of these and you file a nonresident return there, report the same income again to New Jersey, and claim a credit for what you already paid. The credit is capped at your New Jersey liability, so you are not taxed twice, the combined bill lands at roughly the higher of the two rates. On $70,000, New York costs the most at $3,665 and Delaware the least at $3,586, $79 between them.
| Work state | Its tax | New Jersey after credit | Total | Rate that governs |
|---|---|---|---|---|
| Delaware | $3,586 | $0 | $3,586 | Delaware |
| New York | $3,665 | $0 | $3,665 | New York |
What New Jersey itself takes across a salary range
A single filer, taking the standard deduction. This is the figure every arrangement above is measured against, the tax New Jersey charges a resident, whether the work happened inside the state or over a line:
| Wages | New Jersey tax | Effective rate |
|---|---|---|
| $45,000 | $994 | 2.21% |
| $70,000 | $2,377 | 3.40% |
| $120,000 | $5,520 | 4.60% |
What New Jersey charges as your home state
New Jersey taxes income on 7 graduated brackets for 2026, from 1.4% up to 10.75%. Because wages stacks on top of any other income, a second source can push part of it into the next bracket.
New Jersey runs a state disability insurance program: 0.6% up to $161,400 of wages. NJ SDI mandatory for employees. SE may not be subject.
State income tax on wages only, 2026 rates. Not tax advice, what this does and doesn't cover.