Pre-Tax in every state?

[Guest JerseyGirl]

In my *native* state of New Jersey, contributions to a 125 plan are not exempt from state income taxes; a participant will still enjoy, however, the pre-tax status regarding federal income taxes & FICA. Do any other states have this non-exempt rule? What are the rules in Texas?

Thanks in advance!

[Sandra Pearce]

There is no state tax in TX.

[mbozek]

Maybe Pa.

[papogi]

In PA, amounts received from an employer to reimburse day care expenses are taxable.