NEW JERSEY — New Jersey ranks as the state with the seventh highest overall tax burden with a 9.98% overall state tax, according to personal finance website WalletHub’s 2021 Tax Burden by State report. Nearby New York is the highest taxed state in the nation.

What accounts for New Jersey's top 10 ranking? Property taxes.

"New Jersey has the third highest property tax. Plus, the state's individual income tax burden is above average, at almost 2.5%," said WalletHub analyst Jill Gonzalez.

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To determine which states tax their residents most aggressively, the study compared the 50 states based on the three components of state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income.

Overall Rank (1=Highest) 

State

Total Tax Burden

Property Tax Burden

Individual Income Tax Burden

Total Sales & Excise Tax Burden

1

New York

12.79%

4.40% (6)

4.96% (1)

3.43% (22)

2

Hawaii

12.19%

2.45% (35)

3.09% (10)

6.65% (1)

3

Vermont

10.75%

5.04% (2)

2.41% (22)

3.30% (26)

4

Maine

10.50%

4.60% (4)

2.45% (21)

3.45% (20)

5

Connecticut

10.44%

4.06% (7)

3.56% (6)

2.82% (39)

6

Minnesota

9.99%

2.86% (23)

3.68% (5)

3.45% (20)

7

New Jersey

9.98%

4.94% (3)

2.47% (20)

2.57% (43)

8

Rhode Island

9.69%

4.44% (5)

2.29% (27)

2.96% (35)

9

Illinois

9.52%

4.00% (8)

2.11% (32)

3.41% (24)

10

California

9.48%

2.64% (32)

3.78% (4)

3.06% (34)

Tax Burden in New Jersey (1=Highest, 25=Avg.):

  • 7th – Overall Tax Burden (9.98%)
  • 3rd – Property Tax Burden (4.94%)
  • 20th – Individual Income Tax Burden (2.47%)
  • 43rd – Total Sales & Excise Tax Burden (2.57%)

The lowest taxed states are Alaska, Tennessee, Wyoming, Delaware and New Hampshire.

 

 

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