Head-to-head
New Jersey vs Pennsylvania
New Jersey's 2024 price level is 11.233 points above Pennsylvania's (108.805 vs 97.572), New Jersey owners pay $6,279 more a year in property tax at the median, and a reciprocal agreement taxes commuters' wages only where they live.
Updated
| Measure | New Jersey | Pennsylvania | First − second |
|---|---|---|---|
| All-items price level | 108.805 | 97.572 | +11.233 points |
| Rent price level | 134.292 | 85.068 | +49.224 points |
| Home value | $454,400±$1,150 | $254,500±$767 | +$199,900 |
| Two-bedroom gross rent | $1,804±$9 | $1,245±$7 | +$559 |
| Household income | $103,556±$513 | $77,971±$342 | +$25,585 |
| Real estate taxes paid | $9,590±$25 | $3,311±$12 | +$6,279 |
$4,000 of monthly spending in New Jersey scales to $3,587 in Pennsylvania at the 2024 all-items price ratio.
BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap
New Jersey vs Pennsylvania: the widest gap across a commuter border
Rent is the largest price difference. The rent parities are 49.224 points apart, and a Pennsylvania two-bedroom costs $559 a month less at the median, $6,708 a year. Goods are 7.709 points dearer in New Jersey; utilities and other services are closer.
Ownership is where the border bites. New Jersey's median real estate tax paid, $9,590 a year, is the highest in the country; Pennsylvania's is $3,311. Homes cost $199,900 more at the median on the New Jersey side, and mortgaged owners spend $1,067 more a month. For a purchase, use those medians only as a historical reference and get the chosen municipality's assessment and likely bill.
Incomes differ by more than prices. New Jersey's median household income is $103,556 against $77,971, a $25,585 gap; real per capita personal income is $63,142 against $58,620, a smaller $4,522 gap once prices are counted.
Wage taxes are simpler here than across most borders. Under the two states' Reciprocal Personal Income Tax Agreement, set out below, employee compensation is taxed only by the state of residence, so a commuter files one return on wages. Self-employment income is different. Pennsylvania's 6% sales tax has local add-ons in Allegheny County and Philadelphia and exempts most clothing; New Jersey's rate has been 6.625% since January 1, 2018. State collections were $5,662 per resident in New Jersey and $4,330 in Pennsylvania.
The gap has narrowed slightly since 2020, when New Jersey stood at 110.722 and Pennsylvania at 97.717.
Price levels by category
| Measure | New Jersey | Pennsylvania | Gap |
|---|---|---|---|
| All items | 108.805 | 97.572 | +11.233 |
| Goods | 107.066 | 99.357 | +7.709 |
| Housing (rents) | 134.292 | 85.068 | +49.224 |
| Utilities | 114.187 | 109.321 | +4.866 |
| Other services | 103.529 | 99.762 | +3.767 |
| Real income per person (2017 $) | $63,142 | $58,620 | +$4,522 |
Two state tax mixes, FY2025
New Jersey: $54.07 billion, $5,662 per resident. Pennsylvania: $56.55 billion, $4,330 per resident.
| Tax | NJ share | PA share | NJ per resident | PA per resident |
|---|---|---|---|---|
| Individual income | 38.9% | 31.6% | $2,200 | $1,368 |
| General sales | 27.4% | 28.5% | $1,554 | $1,235 |
| Property | 0.0% | 0.1% | $1 | $3 |
| Motor fuel | 0.9% | 5.8% | $49 | $251 |
| Other selective sales | 9.4% | 15.8% | $530 | $683 |
| Corporate income | 15.6% | 7.9% | $884 | $340 |
| Licenses | 5.1% | 5.9% | $289 | $256 |
| Severance | not levied | not levied | — | — |
| Other taxes | 2.8% | 4.5% | $156 | $194 |
Taxes on wages and purchases
| Tax | New Jersey | Pennsylvania |
|---|---|---|
| Income tax | Not summarised on this site; see the New Jersey Division of Taxation | Not summarised on this site; see the Pennsylvania Department of Revenue |
| State sales tax | 6.625% since January 1, 2018 | 6%, plus 1% in Allegheny County and 2% in Philadelphia |
Commuting between New Jersey and Pennsylvania
Under the states' Reciprocal Personal Income Tax Agreement, wages, salaries, tips, commissions and other employee compensation are taxed only by the state where the worker lives: a Pennsylvania resident working in New Jersey owes no New Jersey income tax on that pay, and a New Jersey resident working in Pennsylvania owes no Pennsylvania income tax on it.
The agreement covers employee compensation only. Self-employment income or gains taxable in both states require a nonresident return in the other state, with a credit at home. A worker whose employer withholds the wrong state's tax files a nonresident return there for a refund and gives the employer that state's nonwithholding certificate.
Sources, read : New Jersey Division of Taxation: PA/NJ Reciprocal Income Tax Agreement; New Jersey Division of Taxation: GIT-3B, credit for tax paid to other jurisdictions (January 2026).
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