New Jersey vs Florida Taxes
Compare the total tax burden between New Jersey (1.4% – 10.75%) and Florida (no income tax). Enter your income to see which state saves you more.
| Tax Component | New Jersey | Florida |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $4,180 | $0 |
| FICA | $7,650 | $7,650 |
| Total Tax | $25,000 | $20,820 |
| Take-Home | $75,000 | $79,180 |
| Effective Rate | 25.00% | 20.82% |
| Annual Difference | $4,180 more | $4,180 less |
The $4,180 difference is primarily because New Jersey has a progressive income tax with rates up to 10.8%, while Florida has no state income tax. At your income level, New Jersey's marginal rate is 6.4%.
Why the difference
You'd save $4,180/year ($348/month) in Florida vs New Jersey.
Tax structure
New Jersey uses progressive brackets up to 10.8%, while Florida has no state income tax.
Effective rate at your income
At $100,000, Florida's effective state rate is 0.0% vs 4.2% in New Jersey — a 4.2 percentage point gap.
Tip: New Jersey's combination of high income tax and nation-leading property taxes creates a substantial tax burden. If you work in NYC, note that NJ residents receive a credit for taxes paid to NY, but the NJ/NYC tax interaction can be complex — ensure proper credit on your NJ return.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
New Jersey Total Tax
$25,00025.00% effective rate
Florida Total Tax
$20,82020.82% effective rate
Annual Savings
$4,180by living in Florida
New Jersey vs Florida: Escaping the highest-taxed state in America
New Jersey consistently ranks as the highest or second-highest taxed state in America when combining income tax, property tax, and sales tax. The state's progressive income tax reaches 10.75% on income over $1 million, and its property taxes are the highest in the nation at an effective rate of roughly 2.11%. For a family earning $200,000 with a $500,000 home, the combined state income and property tax bill can easily exceed $20,000 per year.
Florida offers a stark contrast on nearly every dimension. No state income tax, property taxes averaging 0.76% with a generous homestead exemption, and no estate tax. The New Jersey to Florida migration corridor has been one of the most consistent in the country for over a decade, particularly among retirees and empty nesters who no longer need to live near New York City for work.
The financial case is so compelling that New Jersey has implemented some of the most aggressive exit audit procedures in the country. The state scrutinizes domicile changes closely, looking at where you vote, where your doctors are, where your car is registered, and dozens of other factors. Moving to Florida requires deliberate planning to ensure New Jersey considers you a nonresident in the year of your move.
Key Differences Beyond Income Tax
| Category | New Jersey | Florida |
|---|---|---|
| Property Tax | Highest in the nation at ~2.11% effective rate; median property tax bill over $9,000/year | Effective rate ~0.80%; homestead exemption reduces taxable value by $50,000; Save Our Homes caps increases at 3%/year |
| Sales Tax | State rate 6.625%; no local additions; clothing and groceries exempt | Base rate 6%, up to 7.5% with local surtax; groceries and medicine exempt |
| Estate Tax | No state estate tax (repealed 2018); inheritance tax up to 16% applies only to non-lineal beneficiaries — spouses, children, parents, and grandchildren are exempt | No state estate tax or inheritance tax |
| Retirement Income | Partial exemption: first $100K of retirement income exempt for filers 62+ with income under $150K; above that, fully taxed | No state tax on any retirement income, regardless of amount |
| Cost of Living | Among the most expensive states; high housing, insurance, and utility costs | Lower overall, though South Florida coastal areas can rival NJ prices; no state income tax offsets higher home insurance |
Who Benefits from Moving?
Retirees and empty nesters
A retired couple with a $600K home and $120K in retirement income could save roughly $8,900 annually by moving to Florida—but only about $1,000 of that is income tax, because New Jersey's age-62 pension exclusion already removes most of it. The rest is property tax on the home.
High-income professionals nearing retirement
If you're within 5 years of retirement, begin establishing Florida domicile early. New Jersey's exit audits are aggressive, and having a Florida home, voter registration, and driver's license for multiple years strengthens your case.
Business owners with portable income
Self-employed professionals and business owners with clients across the country gain the most. A consultant earning $300K saves about $16,900 in state income tax alone, plus $5,000-$10,000 in property tax on a comparable home.
Bottom line: New Jersey's combined income tax and property tax burden makes it one of the most expensive states at every life stage. Florida eliminates or reduces both — and, unlike New Jersey, imposes no inheritance tax on non-family heirs either.
Tax at Different Income Levels
| Income | New Jersey Total Tax | Florida Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,004 | $13,408 | Save $2,596 |
| $100,000 | $25,000 | $20,820 | Save $4,180 |
| $150,000 | $43,574 | $36,209 | Save $7,365 |
| $200,000 | $61,623 | $51,073 | Save $10,550 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,180/year ($348/month) in Florida vs New Jersey.
Tax structure
New Jersey uses progressive brackets up to 10.8%, while Florida has no state income tax.
Effective rate at your income
At $100,000, Florida's effective state rate is 0.0% vs 4.2% in New Jersey — a 4.2 percentage point gap.
Tip: New Jersey's combination of high income tax and nation-leading property taxes creates a substantial tax burden. If you work in NYC, note that NJ residents receive a credit for taxes paid to NY, but the NJ/NYC tax interaction can be complex — ensure proper credit on your NJ return.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Understanding Each State
New Jersey
New Jersey has progressive income tax brackets reaching 10.75% on income over $1 million. Combined with property taxes that are the highest in the US (average 2.23% of home value), New Jersey has one of the heaviest overall tax burdens nationally. However, NJ does not tax Social Security benefits.
Tip: New Jersey's combination of high income tax and nation-leading property taxes creates a substantial tax burden. If you work in NYC, note that NJ residents receive a credit for taxes paid to NY, but the NJ/NYC tax interaction can be complex — ensure proper credit on your NJ return.
Florida
Florida has no state income tax, funded instead by a 6% state sales tax (plus local additions up to 2%) and property taxes. This makes Florida especially attractive for high earners and retirees. Florida's population has grown rapidly, partly driven by tax migration from high-tax states like New York and California.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Key Comparison Points
Income tax structure: New Jersey has a progressive income tax (1.4% – 10.75%), while Florida has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in New Jersey or Florida?
Based on income tax alone, Florida has a lower tax burden. At $100K income, you'd save $4,180 annually in Florida compared to New Jersey. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from New Jersey to Florida?
A single filer earning $100,000 would save approximately $4,180 per year in total taxes by living in Florida instead of New Jersey. At $150,000 income, the savings change to $7,365 per year.
What is the income tax rate in New Jersey?
New Jersey has a progressive income tax with rates of 1.4% – 10.75%.
What is the income tax rate in Florida?
Florida has no state income tax.
Does Florida have income tax?
No, Florida does not levy a state income tax. Residents pay only federal income tax and FICA. However, Florida may have higher property taxes or sales taxes to compensate.