I live in New Jersey but work in New York City. What state income taxes should appear on my pay stub? United States - 6 Answers Random Answers, Critics, Comments, Opinions : 1 : New Jersey. Thats the state you have residence in. 2 : New York. You file a non-resident NY state tax return, and you fiel a NJ state return and they credit you for taxes paid to NY. 3 : Both NYC and NJ taxes should be deducted. 4 : A company is required to deduct taxes based on where you work not where you live. A company, as a courtesy, can deduct residential state taxes if you request it and they agree to do this. 5 : Usually your employer payroll department deduct the taxes for the state the income is earned in New York City. You do work in New York City so the NYC state income taxes would be the amount that is on your pay stub. You will have file the each 2 state income tax returns next year your resident state income tax return and the nonresident New Jersey state income tax return. You may be able to both of them online next year from each states website. 6 : the employer is in NY, the pay stub will show NY income taxes your tax home is where you work on a long term regular basis short term, temporary assignments less than a year do not change your tax home(which is where you work normally) if this NY job does not appear to be permanent, you file NJ state return as normal and NY non resident/part time |