It’s no surprise that the New Jersey comes with some of the highest taxes in the nation. But how high exactly when compared to the rest of the nation?New Jersey residents have the third highest tax burden in the U.S., according to the Tax Foundation’s State-Local Tax Burden Rankings report released Thursday.
In 2012 — the most recent data the foundation has available — 12.2 percent of New Jerseyan’s income goes directly to state and local taxes. That means for an average taxpayer income of $56,731, that person is shelling out $6,926 a year.
The only states with a worse tax burden are Connecticut, ranked at No. 2 with 12.6 percent of state income, and New York, ranked No. 1 with 12.7 percent. According to the foundation, there are only three states where taxpayers give up over 12 percent of their income to state and local taxes. The next highest burden, in Wisconsin, is 11 percent of state income.
However, it may not be all bad.
The foundation attributes New Jersey taxpayers being in the Top 3 due to high expenditure levels, which are sustained by high levels of revenue. This is likely because New Jersey is a high-income state where residents experience high levels of capital gains.
Here are the states with the highest state-local tax burdens in fiscal 2012:
1. New York (12.7 percent)
2. Connecticut (12.6 percent)
3. New Jersey (12.2 percent)
4. Wisconsin (11 percent)
5. Illinois (11 percent)
And the lowest:
50. Alaska (6.5 percent)
49. South Dakota (7.1 percent)
48. Wyoming (7.1 percent)
47. Tennessee (7.3 percent)
46. Texas (7.6 percent)