Living in New Jersey, working for a New York employer

New Jersey residents working for a New York City employer are the classic convenience-rule case, and the biggest by headcount. New York taxes the wages as New York-source; New Jersey then taxes you as a resident but gives a credit for the New York tax, so you rarely pay twice. But you file both a New York nonresident return and a New Jersey resident return, and New York's rate usually sets the effective cost. If your employer genuinely requires the remote work, the necessity exception can remove the New York tax.

You live in New Jersey, which has a graduated income tax up to 10.8%. And your employer is in New York, which has a graduated income tax up to 10.9%. That combination decides who taxes your wages, and whether a credit keeps you from paying twice. Here's the rule for this specific pair.

The rule for New Jersey → New York

New York convenience rule may tax you

New York can treat your wages as New York-source even though you work from New Jersey, because the remote work is for your convenience, not the employer's. The oldest and most aggressive convenience rule. A nonresident who teleworks outside NY is deemed to work at the employer's NY location (NY-source wages) unless the remote work is for the employer's necessity, not the employee's convenience. That risks tax in both states.
Claim the credit for taxes paid

New Jersey should give you a credit for taxes paid to New York, which usually prevents true double taxation. But you file in both states. Confirm the mechanics.
Confirm the rule

This tool does not attempt to fully model the 'convenience of the employer' rule beyond New York and a small group of clearly identified states. For other jurisdictions, always confirm nonresident wage sourcing directly with the state Department of Revenue or a qualified professional.

What each state would take on $100,000

New York tax (work state)	$5,420
New Jersey tax (home state)	$4,246
Double-taxation risk	Yes, confirm the credit

A credit in New Jersey for tax paid to New York is what prevents the same wages being fully taxed twice, confirm the mechanics on both returns.

Check your own situation

State you live in

State your employer is in

My employer requires me to work remotely

Nothing you enter is stored or sent anywhere, it runs in your browser.

Questions

Do I pay New Jersey or New York tax if I work remotely?

New York can treat your wages as New York-source even though you work from New Jersey, because the remote work is for your convenience, not the employer's. The oldest and most aggressive convenience rule. A nonresident who teleworks outside NY is deemed to work at the employer's NY location (NY-source wages) unless the remote work is for the employer's necessity, not the employee's convenience. That risks tax in both states. New Jersey should give you a credit for taxes paid to New York, which usually prevents true double taxation. But you file in both states. Confirm the mechanics. This tool does not attempt to fully model the 'convenience of the employer' rule beyond New York and a small group of clearly identified states. For other jurisdictions, always confirm nonresident wage sourcing directly with the state Department of Revenue or a qualified professional.

Will I be taxed twice living in New Jersey and working for a New York employer?

There's a real risk: New York's convenience rule can tax your wages as New York-source, and New Jersey taxes you as a resident. A credit for taxes paid usually prevents true double taxation, but you file in both states. Keep evidence if your employer requires the remote work, that exception can remove the New York tax.

This maps the rules; it does not file them. Cross-border filing needs a professional. Convenience-rule specifics vary, confirm with the state Department of Revenue. Nothing stored. Not tax or legal advice.