Key fact: Hoboken and Jersey City residents are NJ residents for tax purposes, paying NJ state income tax but NOT NYC's local income tax. The short PATH ride to Manhattan means you get NJ tax treatment (no NYC local tax) with a near-NYC lifestyle.
After-Tax Pay Comparison at a Glance
The table below compares what an NYC resident takes home versus a non-resident working the same job at the same salary — the only difference is where you sleep at night.
| Salary | NYC Resident Net | Non-Resident Net | Annual Savings | Net After Hudson County, NJ Tax |
|---|---|---|---|---|
| $50,000 | $38,679 | $40,187 | +$1,508 | $40,187 |
| $75,000 | $55,187 | $57,659 | +$2,472 | $57,659 |
| $100,000 | $70,343 | $73,784 | +$3,441 | $73,784 |
| $125,000 | $85,366 | $89,776 | +$4,410 | $89,776 |
| $150,000 | $100,022 | $105,401 | +$5,379 | $105,401 |
| $200,000 | $130,694 | $138,011 | +$7,317 | $138,011 |
* "Net After Hudson County, NJ Tax" applies an estimated home-state tax credit against NY taxes already paid. Individual results vary — consult a tax professional.
How the Taxes Work
Hudson County has boomed as NYC workers discovered they could skip the NYC local income tax with a 10-minute PATH ride. This guide breaks down the exact tax math.
Hoboken and Jersey City residents are NJ residents for tax purposes, paying NJ state income tax but NOT NYC's local income tax. The short PATH ride to Manhattan means you get NJ tax treatment (no NYC local tax) with a near-NYC lifestyle.
The critical distinction is NYC residency. New York City imposes a local income tax ranging from 3.078% to 3.876% on city residents. This tax does not apply to people who merely work in NYC — it applies only to those who live there. As a result, any commuter living outside the five boroughs is automatically exempt, regardless of how many hours they spend in a Manhattan office.
What You Owe: Tax Breakdown at $100,000
Here is how the actual tax math looks for two workers earning $100,000 — one living in NYC, one commuting from outside the city.
NYC Resident at $100,000
Non-Resident at $100,000
The non-resident saves $3,441/year at $100,000 simply by not being an NYC resident — that is the NYC local income tax that residents pay and non-residents do not.
Frequently Asked Questions
Do Hoboken or Jersey City residents pay NYC income tax?
No. Despite being minutes from NYC, residents of Hoboken and Jersey City are NJ residents and are fully exempt from NYC's local income tax.
What is the PATH commute cost?
A PATH SmartLink 30-day unlimited pass costs approximately $109/month as of 2026 — significantly cheaper than many NJ Transit rail options.
Are there any NJ local taxes in Hudson County?
NJ municipalities cannot levy their own income taxes. Property taxes in Hoboken and Jersey City are high, but there is no separate city income tax as there is in NYC.
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