NJ Taxes Among Top 10 Highest In The U.S.: Study

NEW JERSEY — With Tax Day approaching, residents of New Jersey are well aware of how much money is coming out of their wallets and going straight to the government. But locals may or may not be aware that, according to a recent study, tax rates in the Garden State are among the top 10 in the country.

According to the WalletHub study, the average American household pays $10,000 in federal income tax each year; however, where they live and the rate at which they are taxed at the state and local levels play a significant role in how much they pay each year.

Taxpayers in the most expensive states, for example, pay three times as much as those in the least expensive states.

In New Jersey, residents pay an average of $8,117 in state and local taxes every year, the WalletHub study showed. Residents are paying at a tax rate of 12.84 percent, which is one of the highest rates in the country, according to the study.

Tax Rates in New Jersey (1=Lowest; 25=Avg.):

• 42nd–Overall Effective State & Local Tax Rate
• 10th–Income Tax
• 51st–Real-Estate Tax
• 1st – Vehicle Property Tax
• 7th–Sales & Excise Taxes

According to the study, the rate at which New Jersey residents are taxed at the state and local levels is nearly 18.85 percent higher than the national average and is seven percentage points higher than Alaska, which is taxed at 5.84 percent.

This year’s tax filing deadline is April 18.