I am moving from the UK to the US. If I earn $130,000 working in NYC but living in NJ, and my partner earns $100,000, what will our combined monthly take-home pay be after taxes as a married couple?
If you are a New Jersey resident with income from sources outside New Jersey, you qualify for a credit on your New Jersey tax return for the income taxes you pay to New York. Calculating your exact combined monthly take-home pay requires applying the complete 2025 federal tax brackets, Social Security and Medicare percentage rates, and the New York State {"term": "standard deduction", "text": "standard deduction"} to your income. However, the rules confirm you will not be double-taxed on the New York earnings.
You also catch a break on city taxes. Because you live in New Jersey, you are exempt from the general New York City local income tax, which only applies to residents.
As a New Jersey resident working in New York, you must file tax returns in both states. You will file a non-resident return in New York for the $130,000 earned there, and a resident return in New Jersey reporting your combined $230,000 income.
New Jersey requires you to pay tax on all your income, regardless of where it is earned. To prevent double taxation, New Jersey offers a credit for taxes paid to other jurisdictions. This credit reduces your New Jersey tax liability so you do not pay taxes twice on the same income.
For the spouse working in New York City, you do not have to pay the general NYC income tax. Non-resident private employees in NYC are not subject to this local tax.
While we can determine your New Jersey state tax bracket, which for a married couple filing jointly with $230,000 in income is 6.37% minus $4,042.50, finishing the math for your monthly take-home pay requires the federal tax brackets, {"term": "FICA", "text": "FICA"} rates, and New York deductions.
