New Jersey vs Florida Taxes: Complete Comparison
New Jersey vs Florida Taxes 2026: Complete Comparison + Calculator
New Jersey to Florida is the #1 retirement migration route in America. The reason? New Jersey has the nation's highest property taxes AND high income taxes. Florida has neither.
Key Fact: A NJ resident earning $100,000 with a $500K home pays ~$17,000 in state/local taxes annually. In Florida: ~$5,100. Savings: $11,900/year.
Quick Comparison
| Tax Category | New Jersey | Florida | Winner |
|---|---|---|---|
| Income Tax | 1.4% - 10.75% | 0% | ⭐ Florida |
| Property Tax | 2.47% (#1 highest!) | 0.86% | ⭐ Florida |
| Sales Tax | 6.625% | 7.01% avg | ⭐ New Jersey |
| Total Tax Burden | 13.2% (#3 highest) | 9.1% | ⭐ Florida |
| Estate Tax | Yes ($1M exemption) | None | ⭐ Florida |
Bottom Line: Florida wins decisively on income and property taxes. New Jersey's tax burden is crushing.
Total Federal Tax
$16,712
Effective Tax Rate
16.71%
Your Tax Bracket
22%
Marginal tax rate on next dollar earned
Tax Breakdown by Bracket
2026 Tax Brackets (Single)
Income Tax Comparison
New Jersey 2026
- 1.4% on first $20K
- 1.75% on $20K-$35K
- 3.5% on $35K-$40K
- 5.525% on $40K-$75K
- 6.37% on $75K-$500K
- 8.97% on $500K-$1M
- 10.75% on $1M+
Examples:
- $100K: ~$4,200 tax
- $200K: ~$10,800 tax
- $500K: ~$31,900 tax
Florida 2026
$0 on all income
Income Tax Savings
| Income | NJ Tax | FL Tax | Savings |
|---|---|---|---|
| $100K | $4,200 | $0 | $4,200 |
| $200K | $10,800 | $0 | $10,800 |
| $500K | $31,900 | $0 | $31,900 |
Take Standard Deduction
$47,500
Standard deduction of $47,500 exceeds itemized deductions by $22,500
Standard Deduction
$47,500
Itemized Deductions
$25,000
Your total deductible expenses
🎉 NEW 2026 Senior Deduction (OBBBA)
$12,000 additional deduction for taxpayers 65+
Deduction Breakdown
2026 Standard Deduction Amounts
- • Single: $16,100
- • Married Filing Jointly: $32,200
- • Head of Household: $24,150
- • Single: $2,050 per condition
- • Married: $1,650 per person, per condition
- • $6,000 per taxpayer age 65+
- • Phases out at $75K (single) / $150K (married)
- • 6% reduction per dollar over threshold
💡 Optimization Tips
• You're benefiting from the NEW 2026 senior deduction - a valuable OBBBA provision
Property Tax: The Biggest Difference
New Jersey Property Tax
Average: 2.47% (#1 highest in USA!)
Examples:
- $500K home: ~$12,350/year
- $700K home: ~$17,290/year
- $1M home: ~$24,700/year
No homestead protections. No assessment caps.
Florida Property Tax
Average: 0.86%
Examples (with $50K homestead exemption):
- $500K home: ~$5,100/year
- $700K home: ~$7,140/year
- $1M home: ~$10,200/year
Property Tax Savings
| Home Value | NJ | FL | FL Saves |
|---|---|---|---|
| $500K | $12,350 | $5,100 | $7,250 |
| $700K | $17,290 | $7,140 | $10,150 |
| $1M | $24,700 | $10,200 | $14,500 |
This alone justifies many retirements to Florida.
Over-Withholding
$15,600
You're giving the IRS an interest-free loan. Expect a refund.
Estimated Tax Owed
$0
Total Withholding
$15,600
Recommended Action
Tax Calculation Breakdown
Payment Schedule
💡 Withholding Tips
• You're over-withholding by $15,600/year. Consider reducing to increase take-home pay
• Submit new W-4 form to your employer to adjust withholding by $600/paycheck
Real-World Scenarios
Scenario 1: Retired Couple (NJ → FL)
Income: $85,000 (pension + SS + investments)
$600K paid-off home
Ages 68 & 66
New Jersey:
- Income tax: $2,550
- Property tax: $14,820
- Sales tax: $2,650
- Total: $20,020
Florida:
- Income tax: $0
- Property tax: $6,120
- Sales tax: $2,804
- Total: $8,924
Savings: $11,096/year 🎉
Over 25-year retirement: $277,400
Scenario 2: Working Family (NJ → FL)
Income: $180,000
$750K home
2 kids
New Jersey:
- Income tax: $9,400
- Property tax: $18,525
- Sales tax: $3,978
- Total: $31,903
Florida:
- Income tax: $0
- Property tax: $7,650
- Sales tax: $4,204
- Total: $11,854
Savings: $20,049/year 🎉
Total Child Tax Credit
$4,400
Refundable Portion
$0
Credit Breakdown
Refundable vs. Non-Refundable Credit
2026 Child Tax Credit Parameters
Credit Amounts
- • Per qualifying child (under 17): $2,200
- • Per other dependent (17+): $500
- • Refundable portion limit: $1,700/child
Phase-Out Thresholds
- • Single: $200,000
- • Married Filing Jointly: $400,000
- • Reduction: $50 per $1,000 over threshold
💡 Optimization Tips
• Your income is well below phase-out threshold - you're receiving full credit
Which State Wins?
Florida Better For:
✅ Retirees (massive savings)
✅ High earners (no income tax)
✅ Homeowners (much lower property tax)
✅ Business owners
✅ Those who hate winter
New Jersey Better For:
✅ NYC commuters (proximity to jobs)
✅ Four-season lovers
✅ Public school priority (NJ has excellent schools)
✅ Those who hate heat/humidity
Estate Tax Advantage
NJ Estate Tax: Only $1M exemption (very low)
FL Estate Tax: None
$5M estate saves $400,000+ in FL
FAQ
Q: How do I establish FL residency?
Get FL license, register to vote, file Declaration of Domicile, spend 183+ days in FL, update all addresses.
Q: Can I be a "snowbird"?
Yes, but spend majority of year (183+ days) in FL to avoid NJ taxes.
Q: Property insurance in FL?
Much higher than NJ ($3-7K vs $1-2K). But tax savings more than offset.
Conclusion
Florida saves most NJ residents $10,000-$30,000+ annually in taxes—often more than $300,000 over a retirement.
A NJ homeowner with $100K income and $500K home saves $11,900/year in Florida.
Calculate Your Savings:
Total Federal Tax
$16,712
Effective Tax Rate
16.71%
Your Tax Bracket
22%
Marginal tax rate on next dollar earned
Tax Breakdown by Bracket
2026 Tax Brackets (Single)
Your Earned Income Tax Credit
$4,250
Credit being phased out
EITC Credit Breakdown
Income Analysis
2026 EITC Parameters
Maximum Credits (2026)
- • No children: $664
- • 1 child: $4,427
- • 2 children: $7,316
- • 3+ children: $8,231
Key Requirements
- • Must have earned income
- • Investment income limit: $11,950
- • Must file tax return (even if not required)
- • Valid Social Security number required
💡 Optimization Tips
• Your credit is being reduced by $177.378 due to phaseout
• Consider tax-deferred retirement contributions to reduce AGI and increase EITC
AMT Owed
$0
Total Tax Liability
$65,000
AMT Calculation Breakdown
2026 AMT Parameters
- • Single: $90,100
- • Married Joint: $140,200
- • Single: $500,000
- • Married Joint: $1,000,000
- • Phaseout rate: 50% (increased from 25%)
- • 26% on first $244,500
- • 28% on excess over $244,500
Last Updated: Jan 2, 2026
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