We live in NJ, but my husband works in PA. They took a low amount of local PA taxes, do we have to file a PA state return?

The only reasons for you to file a PA income tax return, as a NJ resident, is if you operate a business or rental in PA.

Local taxes you paid to a PA municipality should be treated as "taxes paid to another state" when preparing your NJ return.  You get a NJ credit for local taxes paid to PA.

Page 42 of the NJ instructions explain:

http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf