Dear jfrano-ga;
Thank you for allowing me to answer your interesting question. Here is
a breakdown of New York and New Jersey taxes. It is not possible for
us to determine which scenario is best for you. I will let you make
your own comparison based on what you consider to be ?an advantage?:
NEW YORK
Sales Taxes
State Sales Tax: 4.25% (food, prescription and non-prescription drugs
exempt); Other taxing entities may add up to 4.5% in additional sales
tax.
Gasoline Tax: 23.2 cents/gallon
Diesel Fuel Tax: 21.45 cents/gallon
Gasohol Tax: 23.2 cents/gallon
Cigarette Tax: $1.50/pack of 20; New York City adds an additional $1.50.
Personal Income Taxes
Tax Rate Range: Low - 4.0%; High - 7.7%
Income Brackets: * Lowest - $8,000; Highest - $500,000
Number of Brackets: 5
Personal Exemptions: Single - $0; Married - $0; Dependents - $1,000
Standard Deduction: Single - $7,500; Married filing jointly - $14,600
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, military, civil service,
state/local government pensions are exempt. Also, up to $20,000 of
qualified private pensions for those 59½ and older. Out-of-state
government pensions can be deducted as part of the $20,000 exemption.
For more information on senior citizen and retiree benefits, click
here.
Retired Military Pay: Exempt from taxes.
Military Disability Retired Pay: Disability Portion - Length of
Service Pay; Member on September 24, 1975 - No tax; Not Member on
September 24, 1975 - Taxed, unless combat incurred. Retired Pay -
Based solely on disability: Member on September 24, 1975 - No tax; Not
Member on September 24, 1975 - Taxed, unless all pay based on
disability and disability resulted from armed conflict,
extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to
federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for
those states with income tax. Check with state department of revenue
office.
Property Taxes
Property taxation is limited to real property. New York State law
gives local governments and public school districts the option of
granting a reduction on the amount of property taxes paid by
qualifying senior citizens. This is accomplished by reducing the
assessed value of residential property owned by seniors by 50%. To
qualify, seniors must be 65 years of age or older and meet certain
income limitations and other requirements. For the 59% exemption, the
law allows each county, city, town, village or school district to set
the maximum income limit at any figure between $3,000 and $24,000.
Localities have the further option of granting an exemption of less
than 50% to senior citizens whose incomes exceed the local income
limit by less than $1,000 in three income ranges or $900 in six other
income ranges. For example, in a community that has taken this
"sliding-scale" option and has adopted the $21,500 income maximum, an
eligible resident whose income is more than $21,500 but less than
$22,500, is entitled to a 45% exemption. If a person's income is more
than $29,000 but less than $32,400, the exemption is 5%.
There is no general, statewide homestead property tax exemption.
However, a taxpayer's primary residence may be partially exempted from
school taxes under the state's School Tax Relief Program (STAR)
program. Seniors can take advantage of this program that provides a
partial exemption from school property taxes. Known as the Enhanced
STAR exemption, it is available for the primary residences of persons
age 65 and older with yearly household incomes not exceeding the
statewide standard (maximum). For 2004 assessment rolls, the
applicants' 2002 income, based on their 2002 income tax return, may
not exceed $63,750. A cost of living adjustment will be made to the
STAR income standard again for 2005 assessment rolls and annually
thereafter. For qualifying senior citizens, the Enhanced STAR program
works by exempting the first $50,000 of the full value of their home
from school property taxes. For property owned by a husband and wife,
or by siblings, only one of them must be at least 65 years of age to
qualify for the Enhanced exemption. Their combined annual income,
however, must not exceed the STAR income standard. Call 888-697-8275
or 518-486-5446 for details.
Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is related to federal
estate tax collection. For decedents dying in 2004, the federal
credit offsets 25% of the New York estate tax. For decedents dying
after 2004, the federal credit for state death taxes is eliminated and
replaced with a deduction.
For further information, visit the New York Department of Taxation and
Finance site.
* For joint returns, the taxes are twice the tax imposed on half the income.
RETIREMENT LIVING INFORMATION CENTER
http://www.retirementliving.com/RLstate3.html#NEW%20YORK
. . . . . .
NEW JERSEY
Sales Taxes
State Sales Tax: 6% (food, prescription drugs and non-prescription
drugs, clothing, footwear exempt)
Gasoline Tax: 14.5 cents/gallon
Diesel Fuel Tax: 17.5 cents/gallon
Gasohol Tax: 14.5 cents/gallon
Cigarette Tax: $2.40/pack of 20
Personal Income Taxes
Tax Rate Range: Low - 1.4%; High - 8.97%
Income Brackets: * Lowest - $20,000; Highest - $500,000
Number of Brackets: 6
Personal Exemptions: Single - $1,000; Married - $2,000;
Dependents - $1,500
Additional Exemptions: Taxpayer or spouse 65 or older - $1,000
Standard Deduction: None
Medical/Dental Deduction: Limited to excess of 2% of gross income
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement
benefits are exempt. Payments from a public or private pension plan
as a result of a total and permanent disability are also exempt.
However, if an individual retired before age 65 on a total and
permanent disability pension, and continues to receive pension
payments after age 65, the disability pension is treated as ordinary
incomes. The maximum amount of pension and/or other retirement income
that may be excluded from gross income is being increased over a
four-year period, which began in 2000. Exclusion amounts for 2004 are
$20,000 (filing status married, filing joint return), $10,000 (filing
status married, filing separate return), and $15,000 (filing status
single, head of household, or qualifying widow(er)). Military
retirement pay is not subject to the state's gross income tax. For
details on pensions and annuities, click here.
Retired Military Pay: Exempt from taxes.
Military Disability Retired Pay: Disability Portion - Length of
Service Pay; Member on September 24, 1975 - No tax; Not Member on
September 24, 1975 - Taxed, unless combat incurred. Retired Pay -
Based solely on disability: Member on September 24, 1975 - No tax; Not
Member on September 24, 1975 - Taxed, unless all pay based on
disability and disability resulted from armed conflict,
extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to
federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Not subject to New Jersey gross income tax.
Property Taxes
Property taxation is local. The Homestead Rebate and NJ SAVER Rebate
Programs have been combined into the FAIR Rebate Program. The
homestead rebate and NJ SAVER rebate applications have been replaced
with the FAIR tenant rebate application and a separate FAIR rebate
application for homeowners. Only New Jersey residents who were either
a homeowner or a tenant on October 1, 2004, are eligible for a 2004
FAIR rebate. http://www.state.nj.us/treasury/taxation/index.html?relief.htm~mainFrame
The amount of your rebate is affected by your income, filing status,
whether you were age 65 or older or eligible to claim an exemption as
blind or disabled for tax year 2004, and whether you were a homeowner
or a tenant on October 1, 2004. For tax year 2004, the minimum rebate
for homeowners is $500 (income $1125,001 to $200,000) and the maximum
is $1,200 for income not over $70,000 (but not more than the amount of
property taxes actually paid). The minimum rebate for tenants is $150
and the maximum is $825. Homeowners whose 2004 New Jersey gross
income does not exceed $200,000 may be eligible for a rebate. The
income limit for tenants is $100,000.
For most homeowners, the rebate amount is equal to your property taxes
paid, minus 5% of your gross income, but is limited to the maximum
rebate amount for your income level. In no case will the rebate be
more than the amount of property taxes actually paid.
The Property Tax Reimbursement (PTR) Program reimburses senior
citizens or disabled persons for property tax increases. The amount
of the reimbursement is the difference between the amount of taxes due
and paid in the base year of eligibility and the taxes due in the year
for which the claim is made. To be eligible in 2004, your income
cannot exceed $40,869 if single, or $50,113 (combined income) if
married. Call 800-882-6507.
Inheritance and Estate Taxes
New Jersey imposes a transfer inheritance tax, at graduated rates, on
property having a total value of $500 or more which passes from a
decedent to a beneficiary. The first $25,000 of property passing to
sisters, brothers, daughter-in-law or sons-in-law is exempt from the
tax. A limited estate tax is related to federal estate tax
collection. Information pertaining to the estate tax may be obtained
by calling 609-292-5033 or 609-292-5035.
For further information, visit the New Jersey Department of Taxation site.
* The tax brackets reported are for a single individual. A separate
schedule is provided for married households filing jointly which
ranges from 1.4% under $20,000 to 6.37 for income over $150,000.
RETIREMENT LIVING INFORMATION CENTER
http://www.retirementliving.com/RLstate2.html#NEW%20JERSEY
I hope you find that my answer exceeds your expectations. If you have
any questions about my research please post a clarification request
prior to rating the answer. Otherwise I welcome your rating and your
final comments and I look forward to working with you again in the
near future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga ? Google Answers Researcher
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