The Mid-Atlantic relocation. Virginia's 5.75% top rate dramatically undercuts New Jersey's 10.75% and crushing property taxes (1.89%, highest nationally). At $100,000: New Jersey $8,688 vs Virginia $5,330—save $3,358/year. Northern Virginia (NoVA) offers federal government jobs, Amazon HQ2 (25,000 jobs, $150K+ median), and booming tech sector. Property taxes similar (VA 0.84% vs NJ 1.89%), but NJ's burden is worse. Trade-off: NoVA housing expensive ($650K median Arlington), traffic, car-dependent.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🏖️ New Jersey

10.75%

High Tax State

7 brackets up to 10.75%

🏛️ Virginia

5.75%

Moderate Tax

4 brackets up to 5.75%

Typical Annual Savings

At $100,000 income:

$3,358

That is $280/month back in your pocket!

Tax Savings by Income Level

IncomeNJ TaxVA TaxSavings10-Year
$50,000 $2,525$2,838NJ saves $313$3,130
$75,000 $4,563$4,088VA saves $475$4,750
$100,000 $8,688$5,330VA saves $3,358$33,580
$150,000 $11,738$8,205VA saves $3,533$35,330
$250,000 $22,238$13,955VA saves $8,283$82,830
$500,000 $49,113$28,330VA saves $20,783$207,830

New Jersey Pros and Cons

✅ Pros

  • Proximity to NYC (30 min commute)
  • Top-ranked public schools (Bergen, Morris counties)
  • Shore communities and suburban lifestyle
  • High pharma/finance job density

❌ Cons

  • 10.75% top rate—3rd-highest nationally
  • Highest property taxes in America (1.89%)
  • Massive outmigration (-64,000 in 2022)
  • High cost of living across all categories

Virginia Pros and Cons

✅ Pros

  • 5.75% top rate—5 points lower than NJ
  • Federal government jobs (Pentagon, CIA, NSA, contractors)
  • Amazon HQ2 (Arlington, 25K jobs, $150K+ median)
  • Lower property tax (0.84% average vs NJ 1.89%)

❌ Cons

  • NoVA housing expensive ($650K Arlington median)
  • Car-dependent (lacks NJ transit to NYC)
  • DC Beltway traffic among worst nationally
  • NoVA cost of living high for Virginia
💡

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Frequently Asked Questions

Q: How much will I save moving from New Jersey to Virginia?

Income tax at $100K: save $3,358/year (NJ $8,688 → VA $5,330). Over 10 years: $33,580. Property tax: NJ $7,560/year on $400K home (1.89%) vs VA $3,360 (0.84%)—save $4,200/year. Total annual savings: $7,558 at $100K income + $400K home. Over 10 years: $75,580. Richmond (capital, $350K median) offers even bigger savings: $2,940 property tax (0.84% × $350K) vs NJ $6,650 on $350K home—save $3,710/year.

Q: Is Northern Virginia (NoVA) or Richmond better for NJ refugees?

NoVA for career/income: Arlington/Fairfax/Alexandria near DC—federal jobs, Amazon HQ2 (25K jobs, $150K+ median), defense contractors. Median home $650K (vs NJ $500-650K—similar cost but larger homes). Salaries $120-180K approach NJ levels. Richmond for affordability/lifestyle: State capital, $350K median home (vs NJ $500K—save $150K), growing tech scene (Capital One HQ), better work-life balance. Salaries $80-120K lower but cost-of-living ratio better. Choose NoVA for max income, Richmond for lifestyle/savings.

Q: Can I work remotely from Virginia for a New Jersey employer?

Yes, but watch reciprocity. If you live in VA and work remotely for NJ employer, you pay VA taxes (5.75%) on that income, not NJ (10.75%). At $150K: save $3,533/year. New Jersey doesn't have "convenience rule" like NY. Establish VA residency (VA driver's license, spend majority time in VA). Combine VA 5.75% tax + NJ salary ($100-180K in pharma/finance) + VA housing ($350-650K) = save $200K+ over 5 years vs staying in NJ.

Q: How does Northern Virginia (NoVA) compare to New Jersey for jobs?

NoVA is federal/defense-focused vs NJ pharma/finance. NoVA: Federal government (Pentagon, CIA, NSA, thousands of contractors), Amazon HQ2 (Arlington, 25K jobs), tech (AWS data centers, cybersecurity). Salaries $120-180K. NJ: Pharma (Johnson & Johnson, Merck, Bristol Myers), finance (hedge funds), chemical (BASF). Salaries $100-200K. Total compensation similar, but VA 5.75% tax + $650K NoVA housing vs NJ 10.75% + $550K = VA wins take-home. Choose NoVA for fed/defense, NJ for pharma.

Q: What about Virginia property taxes?

Virginia property tax averages 0.84% (vs NJ 1.89%, highest in US). On $400K home: VA $3,360/year vs NJ $7,560—save $4,200/year. However, NoVA rates are higher: Fairfax County 1.14% ($7,410 on $650K), Arlington 0.99% ($6,435). These approach NJ rates but you get larger homes. Richmond 1.0% ($3,500 on $350K). Virginia Beach 1.03% ($4,120 on $400K). Overall: VA property tax lower than NJ, but NoVA is closer to NJ levels.

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