Hi,
What are the tax implications of renting an apartment in NY vs NJ?

(1) I will be working for a firm based in Manhattan.
(2) Assuming my salary+bonus will be near 135K/yr

I believe if I live in NY - I will have to pay federal, NY state, and NY city tax. If I live in NJ - I will have to pay federal, NY commuter tax, and NJ tax (with some credit for commuter tax paid to NY).

For my situation, what is the incremental tax I will pay if I choose to live in NY city vs if I live in NJ?? (I am looking for a rough number.)

Your NY tax will completely offset your NJ tax liability. Your NY tax liability will be $9,181 (based on SINGLE filing status) if you live in NJ and work in NY. Maintaining an apartment in NY does NOT make you liable for NYC taxes.

If you live in NY and do NOT live in NJ at all, add $4,644 to your tax liability.

Your NY tax will completely offset your NJ tax liability. Your NY tax liability will be $9,181 (based on SINGLE filing status) if you live in NJ and work in NY. Maintaining an apartment in NY does NOT make you liable for NYC taxes.

If you live in NY and do NOT live in NJ at all, add $4,644 to your tax liability.


Where is this $4,644 figure coming from? Also, where is $9,181 coming from?
Thanks!

The $9,181 is a basic NY state tax computations on $135K income.

The $4,644 is for NYC taxes.

Relatively easy to do with tax software. Figures are for 2005.