Moving to Pennsylvania from New York or New Jersey: Taxes, Commutes and Where to Live

In short: People move to the Poconos and the Lehigh Valley from New York and New Jersey for more house for their budget, lower income taxes and the outdoors, while staying about 70 to 100 miles from New York City. Pennsylvania's income tax is a flat 3.07% plus a local earned income tax, compared with rates up to 10.9% in New York (plus up to 3.876% for New York City residents) and up to 10.75% in New Jersey, and a Pennsylvania resident who works in New Jersey pays no New Jersey income tax on their wages. Commuter buses run to Manhattan from the Stroudsburg area and from Allentown, Bethlehem and Easton.

Why people move from New York and New Jersey

• More house for the budget. The same budget usually buys more space and more land here than in the New York and North Jersey suburbs.
• Lower income tax, especially if you work in New Jersey or from home (see the comparison below).
• The outdoors. Lakes, ski slopes, state parks and the Delaware River in the Poconos; river trails, small cities and farmland in the Lehigh Valley.
• Staying close. Most of the Poconos and the Lehigh Valley are within about 1.5 to 2 hours of New York City by car.

Home prices

Homes sold from October 2025 to September 2026. Source: Pocono Mountains Association of REALTORS® (PMAR) MLS, pulled October 2026; Greater Lehigh Valley REALTORS® MLS, pulled October 2026.

Commuting to New York and New Jersey

• By car to New York City: about 75 miles from Stroudsburg, 85 from Tannersville and 100 from Pocono Pines, by I-80; about 70 miles from Easton and 80 from Bethlehem, by I-78. Plan on 1.5 to 2 hours, more at rush hour.
• To jobs in New Jersey: I-80 runs from the Poconos straight into Warren, Sussex and Morris counties. I-78 and Route 22 run from the Lehigh Valley into Hunterdon, Somerset and Union counties.
• By bus from the Poconos: Martz Trailways runs buses to New York City from Stroudsburg and Mount Pocono.
• By bus from the Lehigh Valley: Trans-Bridge Lines runs from the Allentown Bus Terminal, the Bethlehem Transportation Center, Lehigh Valley International Airport, the William Penn Park & Ride and the Easton Intermodal Transportation Center to New York, with weekday service to Lower Manhattan from some stops.
• Philadelphia is about 1 hour 15 minutes from Bethlehem and about 2 hours from Stroudsburg.

Taxes compared

What this means for you depends on where you work:

• You work in New Jersey. Pennsylvania and New Jersey have a reciprocal agreement: New Jersey does not tax the wages of Pennsylvania residents, so you pay Pennsylvania's 3.07% instead of New Jersey's rate. If New Jersey tax was withheld, you file a New Jersey nonresident return to get it back.
• You work in New York. New York still taxes the wages you earn there. Pennsylvania gives you a credit for that tax, up to Pennsylvania's own 3.07%, so your total state tax on those wages stays at about New York's rate. You no longer pay New York City's resident income tax.
• You work from home or locally. You pay Pennsylvania's 3.07% plus the local earned income tax.

Property taxes depend on the exact home, so Ryth gets you the actual tax bill before you make an offer. Once the home is your main residence, Pennsylvania's homestead exclusion lowers your school taxes; apply to the county by March 1. A tax professional can look at your own situation.

Which towns fit your move

• Working in New Jersey along I-80: Stroudsburg, East Stroudsburg and the towns around them are the closest to the Delaware Water Gap bridge.
• Working in New Jersey along I-78: Easton is right at the bridge, with Bethlehem about 20 minutes farther west.
• Taking the bus to Manhattan: the Stroudsburg area on Martz, or Allentown, Bethlehem and Easton on Trans-Bridge.
• Working from home, with the lakes and mountains: Pocono Pines and its lake communities, Tannersville near Camelback, and the wooded townships around them.
• City life you can walk: Bethlehem's historic downtown, Easton's Centre Square and Stroudsburg's Main Street.
• A lower price point: the medians in Allentown and Easton were below Bethlehem's and below both county medians in the table above.

See Buying a home in the Poconos and Buying a home in the Lehigh Valley for each area in detail.

Outdoor life

• The Poconos: skiing at Camelback and Shawnee Mountain, the Appalachian Trail through the Delaware Water Gap, swimming beaches at Tobyhanna and Gouldsboro state parks, and canoeing and tubing on the Delaware River.
• The Lehigh Valley: the Delaware & Lehigh Trail along the rivers, Jacobsburg Environmental Education Center near Nazareth, and Bethlehem's Musikfest every August.

Your first months in Pennsylvania

• Driver's license: get a Pennsylvania license within 60 days of becoming a resident.
• Your car: apply for a Pennsylvania title and registration within 20 days.
• Homestead exclusion: apply to the county by March 1 once the home is your main residence.
• Local earned income tax: if your employer is outside Pennsylvania and does not withhold it, you may need to pay it yourself. The state's Municipal Statistics site lists the rate and the tax collector for any address.

How Ryth helps people moving from New York and New Jersey

Ryth compares towns, taxes and commutes with you before you choose, and handles showings, inspections and paperwork locally, in English or Spanish. For a home you will rent out, see Buying an Airbnb in the Poconos.

Sources

• Pennsylvania Department of Revenue: personal income tax (3.07%) and credits for taxes paid to other states
• New Jersey Division of Taxation: the Pennsylvania and New Jersey reciprocal income tax agreement
• Tax Foundation: New York tax rates (2026)
• Tax Foundation: New Jersey tax rates (2026)
• Tax Foundation: property taxes by state and county (2026)
• Pennsylvania DCED: local earned income tax rates by address
• Pennsylvania DCED: homestead exclusion
• PennDOT: moving to Pennsylvania (driver's licenses)
• PennDOT: transferring vehicle registration from another state
• Martz Trailways: buses to New York City
• Trans-Bridge Lines: schedules and stops

What clients say

I have never met someone so willing to go the extra mile for his clients. I am incredibly grateful for the opportunity to work with Ryth — thanks to his dedication, guidance, and hard work, I was able to close on my dream home. Ryth is young, but he is extremely knowledgeable, responsive, and always willing to help.

For me it has been a great pleasure working with Ryth, a young man who showed great wisdom and helped us find the property we were looking for under the desired conditions. Thank you for everything — we are very happy with his work.

Questions

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