NJ ‘very uncompetitive’ in state-by-state report on taxes
As a resident of New Jersey, or a business owner here, you've probably heard many times over that the Garden State is far from becoming the poster child for tax rates and structure.
But here's another reminder.
In a new report, the Tax Foundation compares all 50 states across more than 40 tax measures. The Facts and Figures report doesn't assign overall rankings to states, but offers readers an understandable way to see how taxes in their state compare regionally and nationally.
"New Jersey tends to be very uncompetitive," said policy analyst Janelle Cammenga. "In most of these categories, New Jersey is looking at a pretty high tax burden on its residents."
Based on Fiscal Year 2019 data, the report finds state tax collections in New Jersey amount to $4,373 per person on average. The U.S. average is $3,141.
As a percentage of owner-occupied housing value, New Jersey posts the highest property taxes in the country, according to the report. Property taxes represent 2.13% of housing value on average in New Jersey, compared to 1.03% nationally.
One of the report's tables recalls the Tax Foundation's Oct. 2020 report, which ranked New Jersey dead last for business tax climate. That report took into consideration individual income, corporate, property, unemployment insurance, and sales and excise taxes.
And only in New York do you have to work longer for "tax freedom." New Jersey ranks 49th for a tax freedom day of April 30 — when residents have earned enough money to pay their federal, state and local tax bills for the year.
As of January, New Jersey hosts the nation's fourth-highest gas tax in the nation, according to the report. Compared to most other states, New Jersey does record a lower tax rate on cell phones.
Contact reporter Dino Flammia at email@example.com.