STATE TAX COMPARISON · TAX YEAR 2026
New Jersey vs Pennsylvania taxes in 2026
Pennsylvania taxes income at a flat 3.07%, while New Jersey taxes it at graduated rates from 1.4% to 10.75%. For single filers, take-home pay is higher in New Jersey at $50,000 and higher in Pennsylvania from $75,000 up, by $6,060 at $250,000. For a married couple with two children, take-home pay is higher in New Jersey up to $100,000 and higher in Pennsylvania from $150,000 up, by $3,889 at $250,000.
Your estimate
- You keep more in Pennsylvania
- $293.50 a year
- New Jersey income tax
- $2,596.00
- Pennsylvania income tax
- $2,302.50
- Take-home in New Jersey
- $58,996.50
- Take-home in Pennsylvania
- $59,290.00
Pennsylvania taxes 401(k) contributions, so they do not reduce Pennsylvania taxable income.
Take-home pay in New Jersey and Pennsylvania
Take-home pay is wages minus state income tax, federal income tax, Social Security and Medicare. Property, sales and other taxes are not included.
| New Jersey | Pennsylvania | |
|---|---|---|
| $50,000 in wages: $320 more take-home in New Jersey | ||
| State income tax | $1,215 | $1,535 |
| Take-home pay | $41,140 | $40,820 |
| $75,000 in wages: $294 more take-home in Pennsylvania | ||
| State income tax | $2,596 | $2,303 |
| Take-home pay | $58,997 | $59,290 |
| $100,000 in wages: $1,110 more take-home in Pennsylvania | ||
| State income tax | $4,180 | $3,070 |
| Take-home pay | $75,000 | $76,110 |
| $150,000 in wages: $2,760 more take-home in Pennsylvania | ||
| State income tax | $7,365 | $4,605 |
| Take-home pay | $106,426 | $109,186 |
| $250,000 in wages: $6,060 more take-home in Pennsylvania | ||
| State income tax | $13,735 | $7,675 |
| Take-home pay | $169,447 | $175,507 |
| New Jersey | Pennsylvania | |
|---|---|---|
| $50,000 in wages: $818 more take-home in New Jersey | ||
| State income tax | $718 | $1,535 |
| Take-home pay | $48,078 | $47,260 |
| $75,000 in wages: $1,008 more take-home in New Jersey | ||
| State income tax | $1,295 | $2,303 |
| Take-home pay | $67,728 | $66,720 |
| $100,000 in wages: $596 more take-home in New Jersey | ||
| State income tax | $2,474 | $3,070 |
| Take-home pay | $86,636 | $86,040 |
| $150,000 in wages: $631 more take-home in Pennsylvania | ||
| State income tax | $5,236 | $4,605 |
| Take-home pay | $122,349 | $122,980 |
| $250,000 in wages: $3,889 more take-home in Pennsylvania | ||
| State income tax | $11,564 | $7,675 |
| Take-home pay | $190,304 | $194,193 |
Rates and deductions
| New Jersey | Pennsylvania | |
|---|---|---|
| Rates | 1.4% to 10.75% | 3.07% flat |
| Standard deduction | None | None |
| Personal exemption | $1,000 single, $2,000 joint | None |
Retirement and Social Security
Does New Jersey tax Social Security?
No. New Jersey does not tax Social Security benefits.
New Jersey Social Security tax rules
Does New Jersey tax retirement income?
Partly. From age 62, New Jersey excludes up to $75,000 of pension and IRA income ($100,000 on a joint return) when total income is $100,000 or less, a smaller share up to $150,000 and nothing above that.
New Jersey retirement income tax for 2026
Does Pennsylvania tax Social Security?
No. Pennsylvania does not tax Social Security benefits.
Pennsylvania Social Security tax rules
Does Pennsylvania tax retirement income?
No. Pennsylvania exempts pensions from eligible employer plans after retirement and IRA withdrawals from age 59 1/2.