About 400,000 New Jerseyans work in New York City and pay as much as $3.7 billion a year in New York taxes.
The spending plan includes a six-month fuel-tax suspension and a $2.2 billion homeowner tax rebate.
More than 4,000 mainland U.S. residents and firms have moved to the territory between 2012 and 2019.
Income between $5 million and $25 million would be taxed at 10.3%.
The governor and state lawmakers have reached a tentative agreement to raise taxes on the wealthiest New Yorkers.
Employees filing 2020 taxes may find themselves stuck in a battle among states claiming part of their paychecks.