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New Jersey
Employee Obligations (Which Returns YOU Must File)
Since South Dakota has no income tax, you won't face double taxation. However, if you physically work in New Jersey, you may owe New Jersey income tax (1.4%-10.75%) and need to file a nonresident New Jersey return.
Employer Obligations (What Your Employer Must Withhold & Remit)
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 COE rule — it only applies to residents of Delaware, Nebraska, and New York. Since you live in South Dakota, New Jersey's rule does NOT apply to you.
Related guides
More from South Dakota · Cross-State Work
- South Dakota → New York
- South Dakota → Ohio
- South Dakota → Oklahoma
- South Dakota → Oregon
- South Dakota → Pennsylvania
Moving to New Jersey from elsewhere · Cross-State Work
South Dakota → New Jersey in other topics
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.