Florida vs New Jersey: Taxes & Take-Home Pay 2026

Why so many New Jerseyans compare Florida

Florida is the classic retirement and remote-work move from New Jersey. Florida has no personal income tax on wages, retirement income or investment income, and nothing is withheld from Florida paychecks for state programs. New Jersey taxes income at 1.4% to 10.75% and withholds three state payroll contributions.

For a single earner at $150,000, New Jersey income tax is about $7,365 plus about $820 in employee payroll contributions; in Florida both are zero. For many households, though, the bigger line item is property tax, and New Jersey’s state tax breaks for homeowners and retirees are more generous than the headline rates suggest.

Retirement income: the gap is smaller than you think

New Jersey does not tax Social Security or Railroad Retirement benefits, and military pensions are exempt at any age. Residents aged 62 or older (or disabled) with total income of $100,000 or less can exclude up to $100,000 of pension, annuity and IRA income on a joint return, or $75,000 single, with partial exclusions up to $150,000 of income. A couple living on Social Security and a $80,000 pension may owe little or no New Jersey income tax already.

Where Florida clearly wins is for retirees with income above $150,000, large capital gains or dividends, or significant traditional IRA withdrawals and Roth conversions. New Jersey taxes all of those as ordinary income.

Property tax: New Jersey deduction vs Florida homestead

New Jersey homeowners and tenants can deduct up to $15,000 of property taxes on their main home from taxable income (tenants count 18% of rent), or take a refundable property tax credit if that is worth more. Senior and disabled residents may also qualify for separate property tax relief programs.

Florida offers a homestead exemption that can reduce the taxable value of your permanent home by as much as $50,000, and homesteaded properties get the Save Our Homes limit on annual assessment increases. You apply with the property appraiser in your county. Because Save Our Homes caps assessment growth from the year you homestead, recent buyers often pay more than long-time neighbors in similar houses.

Sales tax and everyday costs

Florida’s state sales tax is 6%, and most counties add a discretionary surtax averaging 0.98% (up to 2%). The county surtax applies only to the first $5,000 of a single taxable item, which matters for furniture, boats and appliances. New Jersey charges a flat 6.625% with no local add-ons, and half that rate on qualifying sales in Urban Enterprise Zones and Salem County.

Worked example: moving mid-year at $150,000

A remote worker earning $150,000 who moves from Hoboken to Tampa on July 1 is a New Jersey resident for half the year. New Jersey has no separate part-year return: they file Form NJ-1040 reporting income received while a resident, and Form NJ-1040NR only if they had New Jersey-source income afterwards. With about $75,000 of wages in the resident period, the New Jersey tax is roughly $2,596, against $7,365 for a full year. Florida has no return to file.

If the employer is in New Jersey and the worker keeps working remotely from Florida, check how the employer sources those wages and update withholding. Nonresidents owe New Jersey no tax on pension, annuity or IRA income, so retirees who change domicile fully stop paying New Jersey on those payments.

Proving you have left New Jersey

• Apply for the homestead exemption on your Florida home through the county property appraiser.
• Get a Florida driver’s license, register your vehicles and register to vote in Florida.
• Move the things that make a place home: doctors, bank branches, club memberships and, where possible, family items.
• If you keep a New Jersey house, track your days. Under the NJ-1040 instructions, keeping a permanent home in New Jersey and spending more than 183 days there makes you a resident for tax purposes, even if your domicile is elsewhere.