Compare taxes and see how much you save moving from New York to Pennsylvania
The border state escape. Pennsylvania's 3.07% flat rate is the lowest in the Northeast—dramatically cheaper than NYC's 12.7% combined. At $100,000: NYC $9,500 vs PA $3,070—save $6,430/year. Even Philadelphia's 6.86% combined rate (3.07% state + 3.79% city) beats NYC. Pennsylvania also fully exempts retirement income from state tax, making it a top destination for NY retirees. Close proximity allows some to maintain NYC ties while saving on taxes.
High Tax State
Progressive + NYC tax
Low Flat Tax
Lowest flat tax in Northeast
At $100,000 income:
That is $536/month back in your pocket!
| Income | NY Tax | PA Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,850 (NY state only) | $1,535 | PA saves $1,315 | $13,150 |
| $75,000 | $4,600 (NY state only) | $2,303 | PA saves $2,297 | $22,970 |
| $100,000 (NYC) | $9,500 (state + city) | $3,070 | PA saves $6,430 | $64,300 |
| $100,000 (Philadelphia) | $9,500 (NYC) | $6,860 (state + city) | PA saves $2,640 | $26,400 |
| $150,000 (NYC) | $14,300 (state + city) | $4,605 | PA saves $9,695 | $96,950 |
| $200,000 (NYC) | $19,500 (state + city) | $6,140 | PA saves $13,360 | $133,600 |
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Moving from New York to Pennsylvania? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →At $100,000 NYC income: save $6,430/year moving to PA outside Philly (9.5% → 3.07%). Moving to Philadelphia: save $2,640/year (9.5% → 6.86%). Over 10 years outside Philly: $64,300 saved. PA also has lower housing costs—median home $275K (PA) vs $750K+ (NYC area condo).
No—PA is one of the best states for retirees. Social Security, pensions, 401k/IRA distributions, and military retirement are 100% exempt from PA state income tax. A retiree with $80K retirement income pays $0 PA state tax vs ~$4,500 in NY state tax. This makes PA extremely attractive for NY retirees.
Possible but difficult. From eastern PA (Allentown, Bethlehem): 90-120 minute commute to Manhattan. Some people do it for the tax savings. Be careful: if you work in NYC, you may owe NYC taxes on income earned there regardless of residence. Remote work is the optimal strategy—live in PA, work for NYC employer remotely, pay only PA's 3.07%.
Financially, PA suburbs beat Philly. Philadelphia's 3.79% city wage tax brings total to 6.86%—still better than NYC's 12.7%, but the suburbs at 3.07% are clearly cheaper. However, Philly offers urban amenities, no car needed, and easier NYC access via Amtrak. For lifestyle reasons, some prefer Philly despite higher taxes.
Upstate NY (no city tax) pays ~$6,500 at $100K income vs PA's $3,070—PA still saves $3,430/year. But upstate NY has comparable housing costs to PA and similar lifestyle. The savings are smaller than NYC→PA moves. Choose PA for lowest taxes; choose upstate NY if you have specific job or family ties.