[midngn]

We are contemplating a move to NY state, but both my wife and I will still continue to work in NJ. Is there an easy, no brainer way to find out how much we will need to pay in taxes? Do we need to file a state tax claim in both states? How do we figure out if it makes sense to relocate? Thanks.

[ebaines]

When you live in NY you will have to pay NJ non-resident income tax, which will essentially tax you and your wife's earnings as if you live in NJ. After you determine the amount you owe NJ, you then do a NY State tax calculation that first assumes you earned all your money in NY (using NY state tax rates), then allows you a credit for the amount of tax you paid to NJ. Since NY's tax rates are higher than NJ's, you will likely end up owing NY some incremental additional amount. Bottom line is your total tax bill is likely to be higher than it is now. Also, be aware that if you're moving to NY City then you will also have to pay NYC resident tax.

If you want to do a more exact calculation, you can find the income tax rates for NY and NJ through a simple Google search

[AtlantaTaxExpert]

Ebaines covers all pertinent issues; I have nothing to add.

[midngn]

Thanks for your help. So much for Jerseyans complaining about being the highest taxed in the country!

[ebaines]

Property taxes in NJ are pretty brutal, but their income tax ain't as bad as some (NY, CA, and MA all come to mind as being much worse). This is a major reason why so many people commute from NJ to their job in NY, as opposed to the other way round.

[AtlantaTaxExpert]

Noted and in agreement!