Is PA cheaper to live than NJ?

The cost of living in Jersey City, NJ is 58.8% higher than in Philadelphia, PA. You would have to earn a salary of $95,257 to maintain your current standard of living. Employers in Jersey City, NJ typically pay 12.3% more than employeers in Philadelphia, PA.

Is Pennsylvania a tax-friendly state for retirees?

Pennsylvania is one of the most generous states in the country for retirees’ income. They are also helpful when it comes to other taxes. The state sales tax in PA is just six percent, which is one of the lowest in the country. Food and clothing are also exempt from state sales tax.

Is NJ a tax-friendly state for retirees?

New Jersey is moderately tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are partially taxed. Wages are taxed at normal rates, and your marginal state tax rate is 5.90%.

Do you pay taxes on retirement income in NJ?

Pension and annuity income are taxable and must be reported on your New Jersey Income Tax return.

Are taxes better in PA or NJ?

State sales tax for Pennsylvania is at 6 percent, compared to 7 percent for New Jersey. Naturally, there’s more to selecting the perfect home than simply the tax rates.

Are income taxes higher in PA or NJ?

State Income Tax Rate: PA: 3.07% (this is a flat rate) NJ: 1.4% – 10.75% (bracketed rate)

What are the pros and cons of retiring in Pennsylvania?

The pros of retiring in Pennsylvania include low cost of living, no taxes on retirement income, and access to natural beauty, among other things. However, the state also has some drawbacks like an inheritance tax, cold winters, and lack of urban buzz.

Does NJ tax your Social Security?

New Jersey does not tax Social Security benefits or military pensions. Since 2000, New Jersey has provided taxpayers a pension and retirement income exclusion. The retirement exclusion allows qualifying New Jersey retirees to avoid state income tax on a portion of their retirement income.

Does PA tax 401k distributions?

Pennsylvania generally does not levy state income tax on distributions from a 401(k) plan, as long as you receive those distributions after age 59 1/2. This makes Pennsylvania different from the federal government and most other states, which tax all 401(k) distributions.