New Jersey Guide for Canadians

Quick Facts

State Income Tax	1.4% to 10.75% graduated rates (highest in nation)
Sales Tax	6.625% state only (no local sales tax)
Driver's License Grace Period	New residents must obtain NJ license upon establishing residency
Residency Requirement for Tax	Resident for any part of tax year or domiciled in NJ
Vehicle Registration Deadline	60 days after establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for New Jersey's 6-point ID system
• Open US bank account with New Jersey address
• Set up temporary mailing address

Week 3-4: Official Registration

• Apply for New Jersey driver's license (required immediately upon residency)
• Register vehicle if brought from Canada (within 60 days)
• Register to vote in New Jersey

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish New Jersey ties and documentation
• Obtain New Jersey vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents (6-Point ID System):

• Valid Canadian passport (4 points)
• Social Security Number documentation (1 point, if applicable)
• Proof of New Jersey residential address (1 point)

Testing Requirements:

• New Jersey does not recognize foreign driver's licenses
• Both written knowledge test and road test required
• Vision screening required

Important Notes:

• Must obtain NJ license immediately upon establishing residency
• REAL ID required by May 7, 2025 for air travel
• 6-point identification system must be satisfied

Vehicle Registration

• Register within 60 days of establishing New Jersey residency
• Annual safety inspection required
• Emissions testing required in certain counties
• New Jersey insurance required for registration

Tax & Residency Considerations

New Jersey State Tax Profile

• **High progressive income tax** 1.4% to 10.75% (highest marginal rate in US)
• **Inheritance tax** on certain heirs (11-16% depending on relationship)
• **Highest property taxes** in nation (2.13% effective rate)
• **No local sales tax** - 6.625% state rate only

Establishing New Jersey Tax Residency

New Jersey residency is based on domicile and physical presence:

• Resident for any part of the tax year
• Domiciled in New Jersey during tax year
• Physical presence supporting residency intent

Documentation to Establish Residency

• New Jersey driver's license and voter registration
• Bank accounts and utility bills in New Jersey
• Employment or business activities in New Jersey
• Professional licenses, club memberships, property ownership

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• New Jersey expanded Medicaid but coverage limited to eligible residents
• Travel insurance strongly recommended for visitors
• Consider comprehensive US health insurance for permanent residents
• Excellent medical facilities throughout state, especially near NYC

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Extensive pharmacy networks available

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• New Jersey's aggressive tax collection requires careful planning

Property Considerations

• Highest property taxes in the United States
• Property values vary significantly by location
• Senior citizen property tax exemptions available
• Consider impact on Canada's principal residence exemption

Climate & Lifestyle Benefits

• Four distinct seasons with moderate climate
• Close proximity to New York City and Philadelphia
• Excellent public transportation options
• Strong Canadian expat community

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track residency establishment carefully
• REAL ID available for enhanced travel convenience

High Cost, High Convenience

New Jersey offers unparalleled access to major metropolitan areas but comes with the highest property taxes in the nation and very high income taxes. The state provides excellent infrastructure and services but requires careful tax planning.

Key Contacts & Resources