[adi123]

I work in Manhattan approx sal 110000/year. If I move to NJ and rent an apartment ,how much money I should save in terms of tax? (I need approx fig)

Help guys!!

[ebaines]

By moving to NJ you would save the NY City resident tax - if you are single you are in the 4% bracket for NYC tax, and on $110K income the tax for a resident is $4,100 (this doesn't take into account exemptions you may be entitled to). So that's the money you would save. There would be little effect on your state income tax, assuming that you have no other sources of income - the amount you pay NY State now as a resident will be close to what you would pay NY State as a non-resident commuter, and in all likelihod you will not owe NJ any income tax at all.

[adi123]

Thanks ebaines... I have one more question.. Is this the only tax I have to pay apart from Federal tax?. do I have to pay any commuter tax separately or any tax to NJ as I will be residing in NJ?

[AtlantaTaxExpert]

There WAS a commuter tax imposed by NY city for decades, but it was declared illegal by the courts sometime in the 1990s (I believe).

In order to be subject to NY City income taxes, you must LIVE in NY city. The only exception to this rule applies to NYC employees who live outside the city. They have to make a payment to NYC equal to the NYC tax as a condition of employment.

[ebaines]

You will have to file a NJ tax return, but as I said chances are you won't owe anything. New York City dropped its "commuter" taxes years ago. So the taxes you will have to pay as a commuter are:

1. Federal, of course, but no change from what you've been paying
2. NY State - as a non-resident on income earned at you NY job
3. NJ as a resident, but you probably won't owe anything if you don't have any other sources of income other than your NY salary- this is because NY's tax rates are generally higher than NJ's. If you do have other income (capital gains, dividends, etc) you may well owe NJ some tax money.

I am not aware of any municpalities in NJ that have local income taxes, but it's possible depending on where you live.

Keep in mind that your commuting costs will most likely go up (NJ Transit and/or PATH fare into Manhattan).