Analysis: New Jersey has the 10th highest tax rate in the country

(The Center Square) – New Jersey taxpayers pay some of the highest taxes in the country, a new analysis from WalletHub revealed.

“New Jersey residents pay the 10th-highest taxes nationwide, that amount to almost $12,000 a year for the median household,” WalletHub analyst Jill Gonzalez told The Center Square. “Almost half of this amount is spent on real estate taxes, which are the highest in the country.”

While the Garden State ranked No. 42 overall, it did outpace several other states in the region, including Pennsylvania (No. 48), New York (49) and Connecticut (50). Conversely, neighboring Delaware ranked second behind only Alaska.

Additionally, WalletHub released its 2022 tax survey. It revealed nearly three-quarters of Americans (72%) think the government should have provided more tax relief amid the COVID-19 pandemic, while an even higher number (81%) say the government does not spend tax dollars wisely.

“Many people expect to pay this year’s taxes late due to the pandemic,” Gonzalez said. “Inflation and the spike in gas prices are other reasons that may cause financial problems that will have people struggling to pay their taxes.”

To help offset the impact of inflation, state Sen. Anthony M. Bucco, R-Boonton, proposed S-676 to index the state’s gross income tax brackets annually for inflation. According to Bucco, the federal government has done so for more than 40 years and 37 other states index tax rates.

“Families are struggling with higher grocery prices due to inflation and surging gas prices due to the war in Ukraine,” Bucco said in a statement.

According to WalletHub, New Jersey residents face the worst property taxes in addition to their unenviable income taxes. In presenting his proposed $48.9 billion fiscal 2023 budget this week, Gov. Phil Murphy, a Democrat, touted several initiatives he said are aimed at providing New Jerseyans property tax relief.

“In 70 percent of our municipalities, local schools alone account for more than half of the average property tax bill – more than are collected by all county and municipal governments, local libraries, and fire districts, added together,” Murphy said during his budget message this week.

This article was published by The Center Square and is republished here with permission. Click here to view the original.

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