Pennsylvania vs. New Jersey: Which Has Lower Taxes?

It depends on your income. Pennsylvania's flat 3.07% is simpler and lower for higher earners. New Jersey's progressive rates start lower (1.4%) so it's slightly cheaper at the bottom, but they climb to 6.37% and beyond, making NJ more expensive for middle and upper incomes. At $100,000, a single filer keeps about $1,174 more per year in Pennsylvania.

A single filer on $100,000 takes home about $75,908 in Pennsylvania versus about $74,734 in New Jersey — roughly $1,174 more in PA. That's before local taxes: PA adds a ~1% local Earned Income Tax (or Philadelphia's ~3.75% wage tax), which can narrow or erase the gap depending on where you live.

Slightly. Because New Jersey's bottom bracket is just 1.4% (below PA's 3.07% flat rate), a $50,000 single filer keeps about $265 more in NJ. The advantage flips as income rises — by around $60,000 the two are nearly even, and above that Pennsylvania pulls ahead.

Yes. Pennsylvania and New Jersey have a reciprocal agreement, so if you live in one state and work in the other, you're generally taxed only by your home state on your wages. This matters for the many people who commute across the Delaware River between the two states.

New Jersey has the highest average property taxes in the country; Pennsylvania's are lower but still above the national average. Income tax is only part of the picture — if you're comparing the two states, property tax often matters more to your total bill than the income-tax difference.

For income tax alone, Pennsylvania is usually better for middle and higher earners thanks to its low flat rate, while New Jersey edges ahead only at lower incomes. But local taxes (PA's EIT, Philadelphia's wage tax) and NJ's high property taxes can change the answer, so compare your specific situation.