New Jersey does not impose a general exit tax when you move to Pennsylvania, Florida, or Texas. The Garden State’s “exit friction” is property tax while you remain, income tax on worldwide income as a resident, and part-year / sourcing rules in the year you leave.
What is enforced today
Worldwide income while a NJ resident
New Jersey taxes all taxable income while you are a resident — progressive rates up to 10.75%. Moving mid-year requires careful part-year returns.
Property tax — the dominant line item
NJ’s effective property tax rate (~2.23% in our model) on typical 3-bedroom home values drives much of the ~$25,400/yr savings vs. Texas in our defaults — often more impactful than income tax for suburban families.
Newark / Jersey City: no local wage tax
Unlike NYC, Newark and Jersey City do not levy a local wage income tax on residents. Select them in our calculator to confirm $0 city/local wage tax — your burden is state + property + sales. Defaults include $200,000 W-2 + $100,000 business income (~$25,400/yr savings vs. Texas).
Residency and domicile
- Document new state domicile before large asset sales
- NJ-1040 part-year rules when you split the year
- Commuters to NYC may have multi-state complexity — use a CPA
What is not in effect
| Item | Status |
|---|---|
| Broad NJ exit fee for leaving | Does not exist |
| Local wage tax in Newark | Does not exist |
Checklist for New Jersey leavers
- Model property tax first — often the largest savings line vs. Texas
- Align calculator states — NJ in all four blocks on calculators
- Watch Trenton budget cycles — pending proposals
- SALT cap — federal return changes when property tax drops
Next: New Jersey relocation guide · NJ exit tax on home sales · Estimate savings
Run your numbers before you move
Estimate income, property, sales, and living-cost savings with our free calculators — then talk to us about the move and getting your business running on day one.