Here’s Just How All NJ Taxes Rank Compared To Other States
It's almost here. What some would call the worst time of year has basically arrive. It's almost tax time.
Whatever your opinion of how your hard-earned money was handled during the COVID-19 pandemic, it's almost time again to pay the piper. If you dread tax season, a survey by WalletHub.com reveals you're not the only one. According to their findings, 222 million people believe the government hasn't used tax money the way they should have. If you're state of residence has particularly high income taxes, yeah, I bet you feel that way.
While most people know that the IRS isn't perfect, they do acknowledge that the department is basically a necessary evil at this point, just like the taxes they pull from our paychecks. 49% of those surveyed acknowledge the necessity, but just wish improvements could be made to the system.
While it's no secret how high New Jersey's property taxes are, it's surprising to discover that when you look at the full spectrum, the state's income taxes, vehicle property tax, etc. really aren't terrible compared to the rest of the country. For example, New Jersey doesn't have a vehicle property tax, so residents aren't forking over money to Trenton every year for our cars taking space in our own driveways. To be fair, we better not have to since we pay an arm and leg for those driveways with our property taxes.
In terms of income taxes, it may seem like they collect a lot from us NJ residents, but compared to the rest of the country, our pockets are actually a lot fuller than the majority of the other states'. WalletHub refers to it as our "effective income tax rate percentage" and it's only 0.78%. Our income tax rating is 10 out of 51, 51 being the worst. Some states have a percentage of 5.01% (Kentucky).
We all know it's expensive to live in Jersey, but can you imagine how much MORE it would cost us if these other factors weren't as low as they are? I guess the only thing left for us to do at the moment is count our blessings and pray the rest of our ratings don't increase anytime soon.