I live in NJ and will begin working in NYC soon. Each paycheck mow, 3.8% goes to the New Jersey. What is the percentage with will go to New York ?

NY's tax rate is 6.85% on income over $20K, so you will definitely be paying more in NY than you do in NJ.

ebaines,

Do the 6.85 stop somewhere and elevate to another percentage ?

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Originally Posted by labakaas

ebaines,

do the 6.85 stop somewhere and elevate to another percentage ?

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No- 6.85% is the top rate. Here's a good web site that let's you see exactly where the break points are for each state's income tax rates.

The Tax Foundation - State Individual Income Tax Rates, 2000-2008

As someone who lives in NJ and works in NYC, I can tell you that along with paying NY state tax you will still be required to pay income tax to the state of NJ. The tax form is different and the rate is not as high, but it is still something.

Oh - also, my employer does not take out NJ tax. I pay it all when I file.

For most people living n NJ whose sole income is their salary from the NY job, they will end up owing nothing to NJ. However, if you have other income (working spouse, capital gains, bank interest. Etc) you will owe NJ the taxes on that. You must also file the NJ tax form even if you don't owe them anything, to document the credit that you get for having paid NY taxes.