Hi,

I have a question, I just got a job in NJ .. if I continue to live in Philly, does that help for tax purposes or is it better to move to NJ?

I won't get hit with the Philly wage tax anymore right? So, maybe 3% state income tax is better?

Thanks and all the best,
G

no, you will still be hit with the philly wage tax, but at a lower rate from what i understand. if you use the search feature, there are other threads about this. good luck!

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Freudian Slips: when you say one thing but mean your mother

Where in Jersey ? Is it going to be worth the commute ? The bridges will be going up to $5 this fall.

If you live in Philly.... you pay philly resident wage tax...4.21%.... even if you work in Alaska. The lower rate, 3.724 is for people who work in Philly but live outside the city.

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"Some people use change to further their careers and some people use their careers to further change." I voted for change once.....we ended up with Jimmy Carter.

If you own a place in Philly, it still may be preferable to commute as Phila RE taxes are generally lower than those in Jersey and the difference may justify paying the wage tax in Philly. Of course if you rent or are planning to rent in Jersey, the math's different.

I also work in NJ, you will pay a small NJ tax as well. but I would pay anything NOT to live in Jersey.

It really depends if you are going to rent or own in NJ. If you are going to own a home in Jersey, be prepared to get stomped on property tax.

If you are renting, it will "probably" be cheaper to live in Jersey, especially with the increase in bridge tolls (4 or 5 dollars) as stated.

If you do move to Jersey, try to find somethign near the speedline. It will make going into the City stuf easier and cheaper.

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NJ and PA have reciprocity. What that means is that you pay state income tax only to the state you live in. NJ has a "progressive" income tax that goes up; the more you make, the more you pay.

PA has a flat 3.08% tax rate. You can google what your tax rate would be in NJ, but at my income level, my tax would be at least 6.5% if I lived in NJ (I can't remember exactly, but it was in that neighborhood when I last checked (I work in NJ)).

So, with PA state + Philly city, you'd pay something like 7.29% total. In NJ, it could vary.

Keep in mind that our wage tax is scheduled to go down to 3.8% soon, so the total PA + Philly will be 6.88%.

Again, I don't know what your income is, but at most rates ($60,000+), NJ is considerably more expensive (when comparing state rates). If you make enough, your philly + state may be comparable to your NJ income tax alone, especially when the city tax drops.

For me personally, the differential is about .75%, which doesn't justify moving to NJ. Further, I own, so my $1000 property tax bill would be at least 5 times that in NJ and my car insurance would probably go up as well.

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NUTTER 2007