30 Jan If we move to N.J., what state will tax our pensions?

Q. My husband and I are both 71 years young. Both of us receive a New York State pension. We are considering moving to New Jersey. We also receive Social Security. Will we be taxed from both states?
— Thinking about it

A. Come on over.

The water’s fine here in New Jersey.

And we have what may be good tax news for you.

Pensions are only taxable by the state in which you live, regardless of the source, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

“When you move to New Jersey, your New York pensions will be taxable by New Jersey, but not taxable by New York,” he said. “As an added bonus, New Jersey does not tax Social Security.”

But whether or not you’ll owe any taxes to New Jersey at all will depend on your income level, separate from Social Security.

We have what’s called the pension exclusion, which allows residents with income of up to $100,000 — not counting Social Security — to exclude that income from tax. 50,000

Eligible pension income was excluded if their gross income was $100,000 or below.

The maximum pension exclusion was $100,000 for married couples, $75,000 for singles and $50,000 for married couples filing separately.

If your income is up to $150,000, you can exclude a percentage of your retirement income.

Speak with a tax preparer who can look at your specific income numbers to see if you qualify.

Email your questions to .

This story was originally published in January 2024.

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