Ask Experts Questions for FREE Help !
Ask
    labakaas's Avatar
    labakaas Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 3, 2008, 11:20 AM
    New York Tax Rate
    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 ?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Aug 5, 2008, 08:37 AM
    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.
    labakaas's Avatar
    labakaas Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Aug 5, 2008, 08:50 AM
    ebaines,

    Do the 6.85 stop somewhere and elevate to another percentage ?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #4

    Aug 5, 2008, 09:43 AM
    Quote Originally Posted by labakaas
    ebaines,

    do the 6.85 stop somewhere and elevate to another percentage ?
    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
    jjwoodhull's Avatar
    jjwoodhull Posts: 1,378, Reputation: 239
    Ultra Member
    		  
    #5

    Aug 5, 2008, 09:47 AM
    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.
    jjwoodhull's Avatar
    jjwoodhull Posts: 1,378, Reputation: 239
    Ultra Member
    		  
    #6

    Aug 5, 2008, 09:49 AM
    Oh - also, my employer does not take out NJ tax. I pay it all when I file.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #7

    Aug 5, 2008, 10:33 AM
    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Rate of return and coupon rate [ 1 Answers ]

I need someone to show me how to find the value of a bond when it gives a coupon rate and rate of return. The value of $1000 when the coupon rate is 7% and the required rate of return is 8%

Average rate of return, net present value, internal rate of return, & payback period [ 3 Answers ]

CAM Company is evaluating a project requiring a capital expenditure of $619,200. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income ...

The rate of return on a proposal is less than the rate used in the analysis [ 1 Answers ]

if in evaluating a proposal by use of the net present value method there is an excess of present value over the amount to be invested, the rate of return on the proposal is less than the used in the analysis. true or false

Direct-cost rate, Indirect Cost rate [ 1 Answers ]

Budget 2007 Pro labor compensation $960,000 Audit support department cost $720,000 Pro Labor-hours billed to clients 16,000 hours Actual Results 2007 Audit support department costs $744,000 Pro labor-hours billied to clients 15,500 hours Actual pro labor cost rate $58

OPT Tax rate in New york city [ 3 Answers ]

Hi. I am an Indian student on OPT about to start work in a non profit organisation. I wanted to know how much is the OPT tax in New York? My OPT ends on July 19,2006. My income will be around 30-35k during this year.

View more questions Search