1099 Contractor in Delaware with a New Jersey Client: Where Do You File?
Answer
Delaware taxes all of it; New Jersey taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Delaware quarterly. A New Jersey client alone creates no New Jersey filing obligation — performing services inside New Jersey does, and Delaware then credits that tax.
Last verified
The client's location is the wrong thing to track. What matters is where you were sitting when you did the work — which is why a contractor's exposure to New Jersey is measured in days on the ground rather than in invoices sent.
New Jersey publishes no de minimis day count or dollar floor for nonresidents. Any New Jersey-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the New Jersey Division of Taxation nonresident instructions before filing.
What you file
- 1Quarterly estimated payments · Delaware
Make quarterly estimated payments to Delaware Division of Revenue on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · New JerseyForm NJ-1040NR
File a New Jersey nonresident return only if you performed services inside New Jersey. New Jersey publishes no de minimis day count or dollar floor for nonresidents. Any New Jersey-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the New Jersey Division of Taxation nonresident instructions before filing.
- 3Resident return · DelawareSchedule I (Form PIT-RES)
File the Delaware resident return last and claim the credit for any tax paid to New Jersey.
The two states, side by side
| Delaware | New Jersey | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 1 (Form NJ-165) |
| Convenience rule | Yes — general rule | Only against convenience-rule states |
| Nonresident return | Form PIT-NON | Form NJ-1040NR |
| Credit for other-state tax | Schedule I (Form PIT-RES) | Schedule NJ-COJ |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | Delaware Division of Revenue | New Jersey Division of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New Jersey and working in Delaware gives:Home state, plus the client state if you work there.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Delaware → New JerseyBoth states — credit offsets the double tax
- Remote worker: Delaware → New JerseyConvenience-of-the-employer rule — both states tax you
- Moved mid-year: Delaware → New JerseyTwo part-year returns
Other Delaware pairs
Questions people actually ask
I live in Delaware and my client is in New Jersey. Do I have to file a New Jersey tax return?
Delaware taxes all of it; New Jersey taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Delaware quarterly. A New Jersey client alone creates no New Jersey filing obligation — performing services inside New Jersey does, and Delaware then credits that tax.
Do reciprocity agreements help a 1099 contractor?
No. Every state reciprocity agreement in the country is an arrangement about wage withholding between two revenue departments, and a 1099 has no withholding to switch off. Whether Delaware and New Jersey hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Delaware and New Jersey rules on this page were last checked against Delaware Division of Revenue and New Jersey Division of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Delaware Division of Revenue — individual income taxaccessed 2026-08-07
- New Jersey Division of Taxation — individual income taxaccessed 2026-08-07
- New Jersey Division of Taxation — Convenience of the Employer Ruleaccessed 2026-08-07