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NewLoseIt t1_j1qvq9l wrote

> late 20s and probably won't have kids for 5 years or so. She works from home but I work in the Financial District.

Before you compare prices, look at the NYC vs NJ tax difference since it sounds like you two are white collar early-mid-career folks.

My wife and I are “spending more” on rent compared to where we lived in Brooklyn earlier, but after comparing taxes+rent we are saving $1,000+ a month on “rent + taxes”.

That was a major decider in our move.

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Sea_Discount8378 t1_j1ro0v0 wrote

NYC city tax is between 3-3.8% depending on your tax bracket, if you make 250k it’s about 10k a year, not 10k in extra income, like 10k after tax.

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Amsterdaamed OP t1_j1rbinf wrote

I keep hearing conflicting things on taxes. I read the code and it looked to me like working in NYC should require you to pay City taxes, but I am not a tax lawyer. One of the tax attorneys in my firm lives in JC and says he saves on taxes so I guess it's probably true.

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PostPostMinimalist t1_j1rf48w wrote

If you don't live in NYC, you won't pay NYC tax. For something so simple, there sure is no shortage of confusion about this.

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Amsterdaamed OP t1_j1rfl4l wrote

But you still pay NY state taxes right?

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PostPostMinimalist t1_j1rggon wrote

That one is more complicated. In short, yes but you'll get a credit towards NJ state taxes so you aren't actually 'double taxed.' Have to file a return in both states and the math for calculating what you owe is a bit weird but it basically works out to be similar to working in only one state for most people since the NJ versus NY rates are similar enough.

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NewLoseIt t1_j1rh87g wrote

Yes, but NJ taxes are roughly the same as NYS taxes (actually a smidge more in most brackets, but JC/Hoboken offers SIGNIFICANTLY better infrastructure than Long Island or Westchester)

It’s the city taxes that make the most difference

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tottis_den t1_j1rf8o2 wrote

You pay NYC city income tax based on your residency not your work location. So NJ residency = no city taxes

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