Fact Check: "New Jersey has higher taxes relative to other US states"
What We Know
New Jersey is frequently cited as having one of the highest tax burdens in the United States. According to the Tax Foundation, New Jersey has a graduated state individual income tax system with rates ranging from 1.4% to 10.75%. This places it among the states with the highest top marginal rates, alongside California and New York. Furthermore, New Jersey's property tax rates are also among the highest in the nation, with some estimates indicating rates that can exceed 2.47% of property value, contributing significantly to the overall tax burden on residents (NerdWallet, TurboTax).
The State Tax Competitiveness Index ranks New Jersey consistently low in terms of tax competitiveness, often placing it at 49th or 50th among all states. This index evaluates how well states structure their tax systems, and New Jersey's high rates contribute to its unfavorable ranking. Additionally, the state has a high corporate income tax rate, which is currently at 11.5%, further solidifying its reputation for high taxation (Tax Foundation).
Analysis
The claim that New Jersey has higher taxes relative to other US states is supported by substantial evidence from multiple credible sources. The Tax Foundation's data on individual income tax rates clearly indicates that New Jersey's top marginal rate is one of the highest in the country, which directly impacts residents' tax liabilities (Tax Foundation).
Moreover, the state's property tax rates are a critical factor in its overall tax burden. The high property tax rates, combined with the income tax structure, create a significant financial burden for New Jersey residents. The NerdWallet and TurboTax sources corroborate this by highlighting New Jersey's property tax rates as among the highest nationally.
However, it is essential to consider the context of these rankings. While New Jersey's tax rates are high, they also fund extensive public services, including education and infrastructure. This aspect may mitigate some negative perceptions of the tax burden, but it does not change the fact that the rates themselves are high compared to other states.
The reliability of the sources used in this analysis is strong. The Tax Foundation is a well-respected organization that specializes in tax policy research, while NerdWallet and TurboTax are reputable financial services platforms that provide tax-related information. The consistent findings across these sources lend credibility to the claim.
Conclusion
Verdict: True
The claim that "New Jersey has higher taxes relative to other US states" is true. The evidence from multiple credible sources demonstrates that New Jersey's income and property tax rates are among the highest in the nation, leading to a significant overall tax burden for its residents. The state's ranking in tax competitiveness further supports this conclusion, confirming that New Jersey is indeed one of the states with the highest taxes in the United States.
Sources
- State Individual Income Tax Rates and Brackets, 2025
- New Jersey Tax Rates & Rankings
- New Jersey Tax Tables 2023 - Tax Rates and Thresholds in New Jersey
- New Jersey state tax: Rates and other income tax information
- 2025 State Income Tax Rates and How They Work
- Income Tax by State: Which has the Highest and Lowest Taxes
- NJ Ranks No. 49 in 50-State Comparison of Tax Competitiveness
- 2025 US sales tax rates by state