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According to state data, property taxes rose more than 2 percent in 2019 compared with the year prior. The average homeowner paid $8,953 in those tax obligations alone last year.
In 2018, the average resident paid $8,767.
New Jersey is one of the states where wealthy residents are leaving due to a $10,000 cap on state and local tax deductions. In some counties, property taxes alone exceed that deduction.
For example, in Westfield Township, property taxes were more than $17,000 – and they were more than 18,200 in Summit City. In Mendham Township, they were more than $19,500.
As previously reported by FOX Business, New Jersey had the highest percentage of outbound migrations compared to any state last year – at a rate of 68.5 percent. Nearly half of all outbound migrations occurred at income levels of $150,000 or more.
Meanwhile, the state’s Democratic Gov. Phil Jersey recently signed a new SALT cap workaround into law, which lets some small businesses circumvent the cap by allowing them to pay their income taxes at the entity level (the SALT cap applies to income taxes paid by individuals).
While New Jersey’s taxes are already high, Murphy is hoping to raise even more revenues in the state by taxing those with incomes in excess of more than $1 million at a higher rate. He proposed the so-called millionaire’s tax again in his fiscal 2021 budget – marking his third-pitch for the measure.