New Jersey took a big hit in its collective pocketbook in the first full year of the pandemic.
IRS data analyzed by the Tax Foundation shows that the Garden State lost the fourth-largest amount of adjusted gross income in the entire nation in the 12 months between 2021 and 2022: 20,820 tax filers and $5.27 billion.
Over a year’s time, the Garden State lost more than 20,820 tax filers, the analysis shows. Taking into account folks who moved in and out of New Jersey, the report finds New Jersey lost $5.27 billion in adjusted gross income during the 12-month period.
“One reason policymakers should care about their state’s interstate migration patterns is the effect of interstate migration on tax revenue, economic output, and economic growth over time. Between 2021 and 2022, most states that experienced a net loss in income tax filers attributable to interstate migration also experienced a net loss in income associated with interstate migration, while most states that gained taxpayers also experienced corresponding gains in AGI,” explained the Tax Foundation.
New Jersey’s disappearing dollars mostly flowed to southern “red” states including Florida, Texas, and the Carolinas as well as across the Delaware to Pennsylvania.
It’s a long-standing trend that accelerated during the pandemic as opposed to something new and novel. Going back 20 years, the state is out over $45 billion in dollars unadjusted for inflation.
Click here to read the full report.
