New Jersey vs Pennsylvania: Tax & Cost Comparison
2026Side-by-side New Jersey vs Pennsylvania comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. NJ's 10.75% top + 2.46% property tax vs PA's 3.07% flat + 1.49% property tax — Philadelphia-area workers often weigh PA-side residency.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
| Tax / Cost Factor | New Jersey | Pennsylvania |
|---|---|---|
| State income tax (top rate) | 10.75% (progressive) | 3.07% (flat) |
| State sales tax | 6.63% | 6.00% |
| Avg. effective property tax | 2.23% | 1.53% |
| Minimum wage (2026) | $15.92/hr | $7.25/hr |
| State Disability Insurance (SDI) | Yes (0.19%) | No |
| Paid Family Leave | Yes | No |
| Median home price (Q4 2025) | $525,000 | $270,000 |
| Foreclosure type | judicial | judicial |
| BEA Regional Price Parity (2024) | 113.5 | 95.3 |
| Median household income (2024) | $97,130 | $73,170 |
| Median 2-bedroom rent (Q4 2025) | $2,210/mo | $1,450/mo |
Worked example: $75,000 single filer, 2026
For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:
- New Jersey: estimated state income tax ≈ $5,644, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 6.63% on consumption.
- Pennsylvania: estimated state income tax ≈ $1,612, plus federal $7,300, FICA $5,738, sales tax 6.00% on consumption.
Property tax depends entirely on home value. On a $400,000 home: New Jersey ≈ $$8,920/year; Pennsylvania ≈ $$6,120/year.
Combined annual state burden (income + property on $400K + 6% of $50K consumption sales tax) — New Jersey: ~$17,877; Pennsylvania: ~$10,732.
Why this comparison? NJ's 10.75% top + 2.46% property tax vs PA's 3.07% flat + 1.49% property tax — Philadelphia-area workers often weigh PA-side residency.
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Frequently asked questions
Which is cheaper to live in: New Jersey or Pennsylvania?
By BEA Regional Price Parity (2024), New Jersey has a cost-of-living index of 113.5 and Pennsylvania is 95.3 (US average = 100). Median household income: New Jersey $97,130, Pennsylvania $73,170. Median 2-bedroom rent: New Jersey $2,210/mo, Pennsylvania $1,450/mo. Pennsylvania is the lower-cost state by this measure.
Does New Jersey or Pennsylvania have lower income tax in 2026?
Pennsylvania has a top income-tax rate of 3.07%; New Jersey has 10.75%. Pennsylvania is lower at the top bracket.
What about property taxes in New Jersey vs Pennsylvania?
New Jersey's average effective property tax rate is 2.23% (e.g., $8,920/year on a $400,000 home). Pennsylvania's rate is 1.53% ($6,120/year on $400K). Pennsylvania has the lower property tax burden.
Where is the minimum wage higher: New Jersey or Pennsylvania?
New Jersey's 2026 minimum wage is $15.49/hour; Pennsylvania's is $7.25/hour. New Jersey is higher.