NJ Not the Worst Taxed State in US, Says Report [AUDIO]
A new study finds New Jersey is not the worst state in the nation for taxpayers, but it’s close.
WalletHub’s Best and Worst States to be a Taxpayer report, which covers all 50 states and the District of Columbia, finds overall taxes in the Garden State are among the highest in the nation.
“We looked at local income taxes, state income taxes, telecom taxes, real estate taxes, auto taxes — and when the cost of living is factored in, New Jersey ranks as the fourth worst in the nation for taxpayers,” said John Kiernan, a senior analyst at WalletHub.
Kiernan said if you don’t include the cost of living variable, New Jersey ranks seventh worst in terms of the total and local tax burden. On average, New Jersey residents pay $8,830 in taxes, 27 percent higher than the median rate.
Wyoming has the least burdensome tax rate. On average, residents pay $2,365 in taxes. New York has the most burdensome tax rates with residents paying $9,718 in taxes on average.
On the plus side, New Jersey doesn’t have a local income tax or a tax on food. In addition, the state’s fuel tax is the fourth lowest in the nation.
“New Jersey is definitely one of the higher states in the country in terms of taxes,” Kiernan said. “Things like the real estate tax really hold it back. If you can’t afford the tax bill it might be worth it, considering a move. At the end of the day you have to balance that with what you’re getting in return.”