TRENTON, N.J – New Jersey has once again been recognized for something that’s nothing to be proud of:
According to the Tax Foundation, the Garden State has America’s worst business tax climate.
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New Jersey ranked worse than California (#49), New York (#48) and Connecticut (#47).
“The states in the bottom 10 tend to have a number of afflictions in common: complex, nonneutral taxes with comparatively high rates. New Jersey, for example, is hampered by some of the highest property tax burdens in the country, has the second highest-rate corporate and individual income taxes in the country and a particularly aggressive treatment of international income, levies an inheritance tax, and maintains some of the nation’s worst-structured individual income taxes,” explained the foundation’s analysts.
Since 2015, New Jersey has ranked 50th on the Tax Foundation’s list. At present, the state ranks 48th for its corporate tax, 50th for individual income tax, 42nd for sales tax, 46th for property taxes and 31st for unemployment insurance.
“Two years ago, New Jersey lawmakers adopted a temporary corporate surtax, imposing an additional 2.5 percent atop the existing corporate income tax rate for companies with income of $1 million or more, applicable for tax years 2018 and 2019, before dropping to 1.5 percent for 2020 and 2021. This year’s partial rollback of the surtax, yielding a top rate of 10.5 percent (down from 11.5 percent), improved New Jersey one place on the corporate tax component, from 49th to 48th. The state remains 50th on the Index overall,” they explained.
Click here to view the full report.
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