Moving from New Jersey to the Pennsylvania suburbs is a short geographic move that can produce a meaningful change in the cost of homeownership, primarily through property taxes. New Jersey has among the highest property taxes in the country, and many New Jersey residents relocating across the river to Montgomery, Bucks, or Chester County find their total cost of ownership drops even when the home price is comparable. For residents who keep a job in New Jersey, the PA/NJ income tax reciprocity agreement simplifies the tax picture considerably. Because Karen is licensed in both states, she can guide this move from both sides of the river.
This guide covers what New Jersey residents should understand.
The property tax difference
This is the factor that most often surprises New Jersey residents in a favorable way. New Jersey’s property taxes are consistently among the highest in the nation. While Pennsylvania property taxes vary significantly by municipality and school district, and some top Pennsylvania school districts do carry substantial property taxes, the overall picture frequently favors Pennsylvania for buyers coming from high-tax New Jersey municipalities.
The important caveat: property taxes in Pennsylvania are highly local, driven primarily by the school district and municipality. A buyer should model the specific property tax for any community under consideration rather than assuming a uniform reduction. Two homes of similar value in different Pennsylvania school districts can carry meaningfully different tax bills. The comparison to a specific New Jersey origin town should be made property by property, and Karen provides those figures as part of the community evaluation.
The PA/NJ income tax reciprocity agreement
Pennsylvania and New Jersey have a reciprocal personal income tax agreement, which matters a great deal for residents who relocate to Pennsylvania but keep a job in New Jersey (or vice versa). Under the agreement, wage income is taxed by the state of residence, not the state where the work is performed.
In practice, this means a person who moves to Pennsylvania and continues working at a New Jersey employer pays Pennsylvania income tax (a flat 3.07%) on their wages, not New Jersey’s graduated income tax, and files as a Pennsylvania resident. They are not double-taxed, and they do not pay New Jersey’s higher graduated rates on that wage income. For higher earners moving from New Jersey while keeping a New Jersey job, this reciprocity can be a genuine tax advantage.
This applies to wage and salary income. Other types of income have different rules, and the specifics should be confirmed with a tax advisor. But the reciprocity agreement removes the cross-border complexity that residents often worry about.
The commute
For New Jersey residents keeping a job in South Jersey or crossing into Philadelphia, the Pennsylvania suburbs remain accessible:
- To Philadelphia: SEPTA Regional Rail and the bridges connect the Pennsylvania suburbs to Center City. Most of Karen’s active communities are 25 to 45 minutes from Center City.
- To South Jersey: The Pennsylvania suburbs closest to the river (and the bridge crossings) keep a South Jersey commute manageable, though the specific bridge and route matter for timing.
- To suburban PA employment: King of Prussia and the Route 202 corridor are accessible from across Montgomery County.
The right Pennsylvania community for a New Jersey relocator often depends on which side of the move drives the commute, and that is part of the community-selection conversation.
Karen works both sides of the river
Because Karen is licensed in both Pennsylvania and New Jersey, she can handle a New Jersey-to-Pennsylvania move from both ends. She can represent the buyer on the Pennsylvania purchase and, where the move also involves selling a New Jersey home, advise on or coordinate that side as well, including the New Jersey-specific considerations like the attorney review period and the Realty Transfer Fee that New Jersey sellers pay in full.
This matters because a cross-river move usually involves two transactions that need to be timed together. Having one agent who understands both states’ processes keeps the coordination clean. For New Jersey residents who are also selling, the New Jersey market guides on the site, including the South Jersey community and valuation pages, cover that side.
Choosing a Pennsylvania community
New Jersey relocators have the full range of Philadelphia suburbs to consider. The community-selection variables are the same as for any relocation, commute, schools, and lifestyle, covered in the complete guide to relocating to the Philadelphia suburbs. New Jersey residents often gravitate toward:
- Bucks County (Doylestown, Newtown): closest to the New Jersey border, with strong schools and town character, easing the transition for those keeping New Jersey ties.
- Central and eastern Montgomery County: the broad range of school districts and communities for those reorienting toward Pennsylvania employment.
What to expect that is different
The transaction process differs from New Jersey. Pennsylvania has no attorney review period, the Agreement of Sale is binding once signed, and settlement is handled by a title company rather than attorneys. The guide to the PA Agreement of Sale and the guide to what happens at settlement in Pennsylvania cover the differences New Jersey buyers will notice.
Transfer tax is structured differently. Pennsylvania’s transfer tax is typically split between buyer and seller by custom, unlike New Jersey’s seller-paid Realty Transfer Fee.
Working with Karen
Karen Langsfeld is a REALTOR® and Pricing Strategy Advisor (P.S.A.) with Berkshire Hathaway HomeServices Fox & Roach in Blue Bell, licensed in both Pennsylvania and New Jersey. She handles New Jersey-to-Pennsylvania moves from both sides of the river, coordinating the purchase and, where needed, the New Jersey sale.
For the full relocation framework, the complete guide to relocating to the Philadelphia suburbs covers community selection and the buying process.
Contact Karen at (215) 495-2914 or through the contact page.