More good work from the Tax Foundation confirms what every New Jersey homeowner already knows: NJ has the very highest property taxes in the nation. Using 2019 Census Bureau data, the Tax Foundation looked at property taxes paid as a percentage of the value of the home. The makes sense because in wealthy states like NJ the absolute amount of taxes paid will be higher because NJ homes are worth more. The Tax Foundation method allows for apples-to-apples comparisons with other states.
So what does the Tax Foundation study show?
- New Jersey – 2.13%
- Illinois – 1.97%
- New Hampshire – 1.89%
- Vermont – 1.76%
- Connecticut – 1.73%
The presence of NJ, IL, VT and CT in the top five makes sense. That are high-tax “blue” states that rank among the overall worst tax climates in the nation (VT has a Republican governor, but the legislature is overwhelmingly Democrat and the state votes Democratic in federal elections. NJ, IL and CT are thoroughly Democrat.) The presence of NH is a little bit of a surprise except that NH has no income tax. Overall, NH (and states like TX) have high property taxes but overall rank among the states with the best tax climates.
NJ has high taxes for just about everything, ranking as the single worst tax climate in the nation. Why? Because the public unions dominate our political system and more taxes mean more revenues, which mean more government spending, which means more money for … the public unions.
Election-year rebates by Gov. Murphy and the legislature do not alter the long-term ramifications of these facts. All of NJ tax rates remain the same and will continue into the future regardless of one-time rebates.