nyc: I'm starting a job in north Jersey but will be living in Manhattan. I'll be making approx $70k annually. What kind of taxes will I be paying? NJ or NY? NYC? Any commuter tax? Any idea of approx how much of the $70k I should expect to pay to the govt annually? Thanks for your help!|||You will have to file both NY (and NYC) & NJ returns. On your paycheck, you will have NJ withholding (in addition to federal withholdings, medicare, Soc. Sec, among others), you should also consider having your employer withhold NYS/NYC taxes. The reason being, NYS + NYC are taxed at a higher rate than NJ. Despite the fact you will be receiving a resident credit on your NYS/NYC return on the taxes paid to another state (NJ), you will still likely be short in covering the tax liabilites in NYS/NYC, unless you have a signficant amount of itemized deductions. On the flip side, if you work in NYC and lives in NJ, generally you wouldn't need to withhold NJ taxes. By the way, in most cases, you will have to file NYS/NYC resident return and NJ non-resident return. Your tax rate (using the highest rate group - single filing status assumption): Soc Sec 6.2% Med 1.45% Fed: 25% NY: 6.85% NYC: 3.648% NJ: 5.525% Note, as mentioned earlier, you will be getting a resident credit from NJ on your NY/NYC return for the taxes paid in Jersey. So, your actual income tax rate on NY/NYC will be lower because of the resident credit.|||You file both NJ and NY tax returns. On the NY return, you add NY state income tax and NY city income tax and subtract a "resident credit". NJ taxes NY residents only on income from NJ sources. NY taxes NY residents on income from all states. The resident credit is either the tax paid to NJ on the income that was taxed by both states or the tax paid to NY on the income that was taxed by both states, whichever is less. (Note that taxes paid on income taxed by only one of the two states is not included in calculating the credit.) Therefore, the total of all tax you pay, after subtracting credits is: 1) For income from the job in NJ that is taxed in both states, you pay either NY or NJ tax, whichever is more. (If NJ is more, you pay only NJ, because the NY credit balances the NY tax; if NY is more, you pay NJ at the NJ rate and then pay NY at the difference between the NY and NJ rates, when you subtract the credit [equal to the NJ tax] from the NY taxes (computed at the NY rate). 2) For income from the job in NJ that is withheld for something and is, for whatever reason, withheld pre-tax for NY tax purposes but withheld after-tax for NJ tax purposes, you pay NJ tax only. 3) For income from all non-NJ sources (interest, dividends, capital gains, alimony, etc.), you pay NY taxes only. In addition to income taxes, you also pay these taxes: 1) If you commute by car, you also pay whatever taxes are included in the cost of the gasoline, and you pay sales tax on the tires, repairs, etc. 2) If you buy anything in NJ, pay NJ sales tax, and bring it home to NY, you are required to pay an NY use tax equal to the difference between the sales tax that you would have paid if you bought it in NY and the NJ sales tax. If you buy anything in NJ without paying NJ sales tax, and bring it home to NY, you are required to pay an NY use tax to the sales tax that you would have paid if you bought it in NY.