Live in New Jersey, Work in New Hampshire: Which State Taxes Your Paycheck?
Answer
One state, one return: New Jersey. New Hampshire has no wage income tax, so working there changes nothing about what you owe. Your New Jersey resident return reports the New Hampshire income along with everything else, and there is no credit to claim because New Hampshire charged you nothing.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. New Jersey reaches all of a resident's income, and New Hampshire adds nothing on top.
What you file
- 1Resident return · New Jersey
File a New Jersey resident return reporting all of your income.
The two states, side by side
| New Jersey | New Hampshire | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | 1 (Form NJ-165) | None |
| Convenience rule | Only against convenience-rule states | No |
| Nonresident return | Form NJ-1040NR | Not applicable |
| Credit for other-state tax | Schedule NJ-COJ | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | New Jersey Division of Taxation | New Hampshire Department of Revenue Administration |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New Hampshire and working in New Jersey gives:Work state only.
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.
- Remote worker: New Jersey → New HampshireHome state only
- 1099 contractor: New Jersey → New HampshireHome state only — estimated payments
- Moved mid-year: New Jersey → New HampshireOne part-year return — the state you left
Other New Jersey pairs
Questions people actually ask
I live in New Jersey and work in New Hampshire. Which state takes the tax out of my paycheck?
One state, one return: New Jersey. New Hampshire has no wage income tax, so working there changes nothing about what you owe. Your New Jersey resident return reports the New Hampshire income along with everything else, and there is no credit to claim because New Hampshire charged you nothing.
Which state should my employer be withholding for?
New Jersey. Your employer should withhold New Jersey tax rather than New Hampshire tax on these wages. If a New Hampshire line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The New Jersey and New Hampshire rules on this page were last checked against New Jersey Division of Taxation and New Hampshire Department of Revenue Administration 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.
- New Jersey Division of Taxation — individual income taxaccessed 2026-08-07
- New Jersey Division of Taxation — Convenience of the Employer Ruleaccessed 2026-08-07
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07