How Do Taxes Affect Interstate Migration?
IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
12 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?
IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
12 min readWhen examining tax burdens on businesses, it is important to consider both federal and state corporate taxes. Corporate taxes are one of the most economically damaging ways to raise revenue and are a promising area of reform for states to increase competitiveness and promote economic growth, benefiting both companies and workers.
2 min readProperty taxes are the primary tool for financing local government and generating state-level revenue in some states as well.
5 min readThe mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
29 min readThe FDA’s proposal to ban flavored cigars would carry significant revenue implications for many state governments.
7 min readA marriage penalty exists when a state’s income brackets for married taxpayers filing jointly are less than double the bracket widths that apply to single filers. In other words, married couples who file jointly under this scenario have a higher effective tax rate than they would if they filed as two single individuals with the same amount of combined income.
2 min readNew Jersey lawmakers should be weary of flavor bans after seeing the results in Massachusetts.
3 min readWhile many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
12 min readAmong the 46 states that held legislative sessions this year, structural state tax reform and temporary tax relief measures were recurring themes.
13 min readIf the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
4 min read