NYC vs. Suburbs: Comparing Your Tax Bill

The Great NYC vs. Suburbs Debate

One of the most common questions we get is: "How much would I save in taxes if I moved out of NYC?" The answer might surprise you—it's significant, but perhaps not as massive as you'd think.

The NYC Tax Burden Explained

Living in New York City means you pay three layers of income tax:

That third layer is what makes NYC unique among most US cities.

Real Numbers: A $100,000 Comparison

Let's compare the taxes for a single filer earning $100,000 in different locations:

NYC Resident

Long Island / Westchester (NY State, Outside NYC)

Difference: **$3,441 per year** or **$287 per month**

But Wait—Consider Property Taxes

Before you pack your bags, remember that suburban living often comes with higher property taxes. Nassau County and Westchester have some of the highest property taxes in the nation.

These differences can offset—or even exceed—the NYC income tax savings.

What About New Jersey?

Moving to NJ means you escape both NYC and NY State income taxes, but NJ has its own income tax:

NJ Commuter to NYC:

However, NJ also has high property taxes, and you'll face commuting costs.

Yonkers: A Special Case

Yonkers is unique—you pay a 16.75% surcharge on your NY State tax instead of a flat local tax. For our $100,000 earner, that's about $830 in Yonkers tax vs. $3,441 in NYC.

Breaking Down Higher Incomes

The NYC tax burden increases for higher earners due to NYC's progressive rates:

Other Factors to Consider

Living in NYC

Living in Suburbs

The Bottom Line

For a $100,000 earner, moving from NYC to Long Island or Westchester saves roughly $3,400 per year in income taxes. At higher incomes, savings increase proportionally.

However, the full financial picture includes property taxes, commuting costs, car expenses, and lifestyle factors. Many NYC residents find that when all costs are considered, the difference is smaller than expected.

Use our tax calculator to compare your specific situation.