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New Jersey
Employee Obligations (Which Returns YOU Must File)
New Jersey has a Convenience of Employer rule that affects Delaware residents. If your employer is in New Jersey and you work remotely from Delaware, New Jersey may still tax your paycheck. File a nonresident New Jersey return plus your Delaware return and claim the Schedule W credit. Consider consulting a CPA.
Employer Obligations (What Your Employer Must Withhold & Remit)
New Jersey's Convenience of Employer rule may require withholding New Jersey tax even if the Delaware employee works 100% remotely. Register from day 1 for withholding, unemployment, TDI, FLI, and Workforce Development. Must withhold several employee deductions. NJ COE does NOT apply to Minnesota employees. Unemployment plus WDD ranges from 0.5% to 5.8% plus 0.1175% on the first $44,800. Employer TDI is 0.50%.
City & Local Income Taxes (Extra Filings Beyond the State Return)
Newark charges a 1% payroll tax; nonresidents get a 50% exemption (approximately 0.5% effective rate). This is the only New Jersey city with such a tax.
Other Paycheck Deductions (Disability, Paid Leave, Unemployment)
TDI plus FLI (0.23%) plus employee SUI contributions.
Remote Work Tax Risk — Convenience of Employer (COE) Rule
New Jersey has a reciprocal Convenience of Employer rule that affects Delaware residents. If your employer is based in New Jersey and you work remotely from Delaware, New Jersey may tax your entire paycheck as if you worked there.
Related guides
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This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.