Working in NYC

[302w 83]

On average how horrendous is working in NYC tax wise?

 

An opportunity popped up, and I'm wondering how much more I would have to make to break even. I am aware that I would have to pay taxes to PA and NY, whereas I get NJ refunded now. Thanks guys.

[W2MC 1,699]

As I remember...its new york state, new york city, and Pennsylvania

[Rob0115 1,105]

Why would you pay PA taxes?  You can only live in one state as far as residency.  NJ is net of NY and since NJ at certain income levels is higher you will pay a bit more to NJ on top of your NY taxes.  Which state is your residence e.g. where do you vote?  In NYC there is also NYC city tax 3.86% that awesome Bill D wants to raise to 4.41% (asshole).  Then there is the cost of the commute and some value to your time.  However, it can't just be about now.  If you are early in your career where do you have the best long term prospects for pay / promotion?  

[CMJeepster 2,778]

My brother-in-law did it for about a year before he bailed.  My neighbor still does it and spends 3-4 hours a day commuting.  He's missed a lot of kid / family things because of it, but he does make bank.  I personally wouldn't do it.  I like my 15 unute commute and less stressfull way of life.

[W2MC 1,699]

Why would you pay PA taxes?  You can only live in one state as far as residency.  NJ is net of NY and since NJ at certain income levels is higher you will pay a bit more to NJ on top of your NY taxes.  Which state is your residence e.g. where do you vote?  In NYC there is also NYC city tax 3.86% that awesome Bill D wants to raise to 4.41% (asshole).  Then there is the cost of the commute and some value to your time.  However, it can't just be about now.  If you are early in your career where do you have the best long term prospects for pay / promotion?  

 

Because, NY is unlike NJ and PA....which long ago agreed to stop double-taxing each other's residents.  There is no such agreement with NY 

[Krdshrk 3,877]

wait what?  You'd work in NYC and live in PA?  Yeah you're going to get double-taxed.

 

NJ/NY doesn't double-tax.

 

The commute can be long, but the pay bump (depending on where you work) can be worth it.  Doing IT for a small company in NJ, to a larger company in NYC, I essentially doubled my salary in 2 years time.

[diamondd817 827]

 

 

NJ/NY doesn't double-tax.

 

 

This is correct.

 

The commute also depends on location in NY and time of day/night you will be driving.

[Bully 749]

I can't help with the tax thing as NY/NJ doesn't double up. However keep in mind the commute. I did it for 15 years. I now commute 15 minutes, on a bad day. I used to commute 1:45. That's each way. I finally realized that my time and honestly, my health, were worth more than money. I took a HUGE pay cut but couldn't be happier. If you're looking at a 2-3 year thing before you bail, I would say do it. Working in NYC has it's benefits to career paths. However if you are looking for longer than that, look for an apt in NYC to crash in and head home Friday evenings if that's at all feasible. The commute is a killer.

 

Good luck with it.

 

C

[Rob0115 1,105]

I've commuted from NJ to NYC for 27 years.  Now I commute from Florida on Monday morning to Thursday night.  I would never, ever, ever commute from PA to NYC. It is way worse than anyone could imagine. I worked with a guy that did it from the Poconos, in a word intolerably miserable.  

[Rob0115 1,105]

Because, NY is unlike NJ and PA....which long ago agreed to stop double-taxing each other's residents.  There is no such agreement with NY 

I asked because he lists both NJ and PA as locations.  I don't know which is home.  I don't know if he lives in NJ and works in PA or the other way around.  

 

I would also never pay taxes in two states, it won't overcome the increase in salary and the cost of commuting nevermind the pain of commuting.

[Malsua 1,422]

It will cost you at least 10k in taxes and commuting/other costs to work in Nyc vs Nj. Add in the hassle of commuting and the irreplaceable time of your life you will lose as an expense as well. Person ally I wouldn't do it for less than 150% of my current wages.

 

I did it for almost 5 years and while I enjoyed working in the city much of the time I was glad when it ended. I was also 28-33 at the time, so Thursday 4pm $2 Margheritas had a lot of appeal. Probably $5 now.

[45Doll 5,877]

You should consider if the increase in your net pay will be worth the net decrease in your life.

 

I found you cannot enjoy any extra money if you don't have enough life.

[Krdshrk 3,877]

It will cost you at least 10k in taxes and commuting/other costs to work in Nyc vs Nj. Add in the hassle of commuting and the irreplaceable time of your life you will lose as an expense as well. Person ally I wouldn't do it for less than 150% of my current wages.

 

I did it for almost 5 years and while I enjoyed working in the city much of the time I was glad when it ended. I was also 28-33 at the time, so Thursday 4pm $2 Margheritas had a lot of appeal. Probably $5 now.

Try like $8

 

My company does have Beer Thursdays though - free beer @ 4PM... 

 

You should consider if the increase in your net pay will be worth the net decrease in your life.

 

I found you cannot enjoy any extra money if you don't have enough life.

 

Work/Life balance tends to be more of a work/work balance.  I'm currently tolerating it but started looking elsewhere too...

[Malsua 1,422]

It was a little hole in the wall on 3rd around 32nd...even then it was an unheard of deal, the point was you could have a couple of drinks and still have change from a $20. Now I very rarely drink anything so that once a year at Christmas doesn't make up for all the bs commuting aND your $20 might get yout 2 beers.

[PD2K 115]

On average how horrendous is working in NYC tax wise?

 

An opportunity popped up, and I'm wondering how much more I would have to make to break even. I am aware that I would have to pay taxes to PA and NY, whereas I get NJ refunded now. Thanks guys.

If you're living in PA, it's not worth it IMHO. I agree with others that it's better if you live in NJ.

[Alex V 99]

I took a job in NYC when I got licensed because they offered me roughly 40% more than I was currently making in NJ.  The company I was with promised me the moon and the stars if I hurried up and got my license, I did, I got "screwed."  I worked in NYC for 11 months and bailed.  I have a park and ride within walking distance from my house, the bus cost $330/mo with another $25/mo to park.  Considering the pay increase, it was okay.  The time commuting was a nightmare however and caused a lot of fighting with my wife.  When you leave at 7am and come home at 8pm, you mood is not conducive to a healthy relationship. At first the tax situation didn't hurt us too bad.  I got a tiny refund from NYC - roughly $20, and with the wife working in NJ we got an NJ refund as well.  

 

When I went back to working in NJ, I realized just how much NYC taxes sucked. Getting paid exactly the same annual salary, I would bring home almost $3.5K more a year in tax differential alone!!!!

 

Never again will I work in NYC...

 

My father has been working in NYC for over 15 years.  I have no idea how he does that commute.  

[Polak 3]

I'd rather make less and be happy than make more and be miserable and spend hours commuting.

[WhiskeyTangoFoxtrot 358]

Just to clarify, you should NOT be paying 3.86% NYC tax unless you live in NYC. You should only be paying federal and NYS taxes. A lot of people get screwed by this. Do not fund those socialists.

 

In my experience, the NJ and NYS income taxes pretty much wash out but YMMV.

 

Just do the math. Use an online pay calculator and figure out what you true take home pay is. Factor in your commute time and expense (could be $20+ a day). You'll probably see quick whether it's worth it or not.

[HBecwithFn7 296]

I also worked in NYC at my last corporate job until my firm bought facilities in NJ after 9/11.  What a pleasure it was to go from a 1.5hr one way commute to 40 minutes one way, and not have to pay NY taxes anymore and file two returns.

 

I wouldn't do it again, either.

[Howard 538]

Unless they recently changed it you no longer pay the NYC tax unless you live in NYC.  The NY State legislators killed that quite a few years ago and have not (as of yet) reinstated the commuter tax.  That said, you have to be crazy to commute from PA to NYC on a daily basis.  For the same hours you put in you could probably get a job where you are and a part-time job flipping burgers in the time you would be commuting and net more money and less aggrevation.

[Kevin125 4,772]

Because, NY is unlike NJ and PA....which long ago agreed to stop double-taxing each other's residents. There is no such agreement with NY

I've worked in NYC for 22 of the last 27 years. You avoid dble tax for NJ. Don't know about PA. Sounds like it would cost you 10k or 20k plus commuting costs.

 

Yes, the money can be way better. Especially if you work for a financial in NYC. Like 100k to 200k better than NJ.

 

But you can't get back the 4 hours a day you'll spend commuting. That to me is the question you have to answer. Is the money going to be worth it. If the outfit you're going to lets you work at home 1 day per week, it makes it better. I can't do that, but they are flexible when i need time off.

 

For me the pay and stability of the company sealed the deal. The flexible time off policy makes it livable.

[45Doll 5,877]

"The thing about money Bud... it makes you do things you don't wanna do."

[Rob0115 1,105]

Try like $8

 

My company does have Beer Thursdays though - free beer @ 4PM... 

 

 

Work/Life balance tends to be more of a work/work balance.  I'm currently tolerating it but started looking elsewhere too...

$17 in a nice place.

[302w 83]

Thanks for the imput everyone!

[Barms 98]

Why are guys on here saying there is a NYC tax for out of staters. The "commuter" tax was abolished years ago.

 

Yes you file a NYC tax return but every penny you pay to NY you get credit on NJ under "taxes paid to other jurisdictions"

[Rob0115 1,105]

Why are guys on here saying there is a NYC tax for out of staters. The "commuter" tax was abolished years ago.

Yes you file a NYC tax return but every penny you pay to NY you get credit on NJ under "taxes paid to other jurisdictions"

I don't think anyone was disputing that. OP may live in PA which doesn't rebate.

[302w 83]

OP lives in PA.

[Rob0115 1,105]

I wouldn't do it. 

[Sht 3]

It's like a part time job and you got to be a little crazy to do. That said uv been doing it for the last 12 years.

[fumanchu182 23]

I've been doing it for about ten years now.  Here's the deal, the Hudson Country region is so saturated with commuters that no matter where you are (even right outside the GW, Lincoln or Holland) you can expect a 30-60 minute commute.  It's a shit show once in a while for commuters outside the county (I take the NJ transit 128/165/168 line).  The NY taxes only cover up to 98% of NJ taxes and I wind up writing a small check to NJ once a year, no biggie though.  The biggest gripes I have are the Port Authority waits to get on and get off a bus, that terminal needs to be demolished and rebuilt but the just nixed a plan to do so.  In regards to doing it from PA, good luck.