April 15th is here again! For all the procrastinators, the US postal office at 69 Montgomery is open until 5 pm so you still have a few hours to finish your return and mail it off.
On the brighter side, here are a couple of great tax reasons to love Jersey City:
Low 3.5% Sales Tax in Jersey City
Because Jersey City is in a dedicated UEZ, sales tax is only 3.5% (see Jersey City's UEZ map here). For comparison, sales tax in New York City is 8.875%!
No NYC Income Tax for Jersey City Residents
If you live in one of the boroughs you pay NYC income tax since New York City is one of the few cities that charges its own income tax, which can be as much as 2.9% to as high as 3.876% -- that is in addition to federal and state income taxes! Despite the moniker, Jersey City residents are not in NYC for tax purposes and are not subject to this tax. This is especially awesome for recent transplants from Manhattan, Brooklyn, Queens, the Bronx and Staten Island since when they move to Jersey City it's like getting a 2-3+% raise! What a bargain since it is still very easy to commute to New York from Jersey City.
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May want to revisit your NYC tax assessment.
ReplyDeleteA NYC resident working in NYC pays NYC Local, NY State, and Federal.
A JC resident working in NYC pays NJ State, NY State, and Federal.
The "raise" you presume is negated by the NJ State income tax. Most of that state income tax is returned once taxes are filed, but a JC working in NYC will not "see a raise in their paycheck."
If you work in NYC and live in NJ you typically do have NY state taxes withheld from your paycheck, but not NJ. When you do your return you must file a state return with NY as a nonresident and NJ as a resident and you will get a credit for part or all of the taxes paid to NY state. There's a good discussion of this topic at JCList: http://jclist.com/modules/newbb/viewtopic.php?topic_id=11730 but always check with your tax professional on the particulars of your own situation.
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