State Aid in American Rescue Plan Act Is 116 Times States’ Revenue Losses
Here’s each state’s estimated revenue gains or losses in 2020, alongside the state and local aid that would be allocated to each under the American Rescue Plan Act.
8 min readHow does New Jersey’s tax code compare? New Jersey has a graduated state individual income tax, with rates ranging from 1.400 percent to 10.750 percent. There is also a jurisdiction that collects local income taxes. New Jersey has a graduated corporate income tax, with rates ranging from 6.5 percent to 9.0 percent. New Jersey also has a 6.625 percent state sales tax rate and an average combined state and local sales tax rate of 6.60 percent. New Jersey has a 2.08 percent effective property tax rate on owner-occupied housing value.
New Jersey has an inheritance tax. New Jersey has a 42.4 cents per gallon gas tax rate and a $2.70 cigarette excise tax rate. The State of New Jersey collects $8,308 in state and local tax collections per capita. New Jersey has $10,731 in state and local debt per capita and has a 54 percent funded ratio of public pension plans. Overall, New Jersey’s tax system ranks 50th on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and New Jersey is no exception. The first step towards understanding New Jersey’s tax code is knowing the basics. How does New Jersey collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
Here’s each state’s estimated revenue gains or losses in 2020, alongside the state and local aid that would be allocated to each under the American Rescue Plan Act.
8 min readCongress chose to exempt forgiven Paycheck Protection Program (PPP) loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both.
7 min readIndividual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections in fiscal year (FY) 2017. Several states had notable individual income tax changes in 2020: Arizona, Arkansas, Massachusetts, Michigan, Minnesota, North Carolina, Ohio, Tennessee, Virginia, and Wisconsin.
22 min readStates compete with each other in a variety of ways, including in attracting (and retaining) residents. Sustained periods of inbound migration lead to (and reflect) greater economic output and growth. Prolonged periods of net outbound migration, however, can strain state coffers, contributing to revenue declines as economic activity and tax revenue follow individuals out of state.
4 min readWith most states experiencing reduced tax revenues due to the coronavirus pandemic, several are contemplating whether recreational marijuana legalization and taxation may be one avenue to raise new revenue. While states that have already legalized do raise meaningful revenue, lawmakers should remember that establishment of legal markets takes time.
5 min readLawmakers looking to close budget shortfalls would be well-advised to consider other and more stable avenues for new revenue.
28 min readWhile many factors influence business location and investment decisions, sales taxes are something within lawmakers’ control that can have immediate impacts.
12 min readTwenty-six states and the District of Columbia had notable tax changes take effect on January 1, 2021. Because most states’ legislative sessions were cut short in 2020 due to the COVID-19 pandemic, fewer tax changes were adopted in 2020 than in a typical year.
24 min readThe coronavirus relief package represents the second-largest recovery legislation, behind only the CARES Act, for a combined total of more than $3 trillion in support.
8 min readBy the time marijuana is sold to a consumer, local taxes could be applied four different times—by one or more localities.
5 min read