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Old 11-27-2006, 02:02 PM
 
43 posts, read 191,275 times
Reputation: 35

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I found this article about taxes and was wondering if anyone (especially people who moved out of NJ) can comment about the income tax in NJ vs. GA and about taxes in general.
Looking at the table below it seems that we do have tax advantage in NJ. But I am not an expert and would like to hear from people who have personal experience.
Some numbers could be little different since the article is from 2003

NEW JERSEY vs. RELATIVELY FLAT TAX STATES
An interesting component of the analysis of the New Jersey income tax involves comparing tax burdens by income category to states that might arguably be considered to have less of a tradition of progressive taxation. We might expect that upper-middle- and upper-income earners in states with flat or regressive traditions paid less of a tax burden than equivalent income earners in states with more progressive tax structures. However, comparing the New Jersey income tax to these states shows just the opposite.
New Jersey vs. Selected States with Relatively Flat Tax Structures

_________________$0_______$25,000_$45,000__$65,000
_________________To_______To______To_______To
_________________$24,999__$44,999__$64,999__$94,99 9__$95,000 and up

New Jersey_______$0_______$508_____$892____$1,659____$ 2,641
Louisiana_________$203_____$695_____$1,365__$2,112 ____$2,695
Alabama_________$523______$1,159___$1,999__$2,937_ ___$3,663
Mississippi________$102_____$663_____$1,620__$2,87 0____$3,870
Georgia__________$439_____$1,339___$2,539___$4,039 ____$5 ,239
S. Carolina_______$135_____$1,046____$2,379__$4,108__ __$5,508
State Averages*__$280______$980_____$1,980__$3,213____$4 , 195

Income categories are for married taxpayers.
* Excluding New Jersey.
It is important to note that there is essentially no difference between upper income tax burdens of these flat tax structure states versus New Jersey's neighbors in the northeast. The geographic averages for these states is $4,195, while New Jersey's neighbors average $4,225-only a $30 difference. Additionally, tax burdens for the second highest and highest group of taxpayers are 94% and 59%, respectively, above equivalent income categories in New Jersey.
One might have thought that a comparison with less tax-progressive states should place New Jersey in a more favorable light for two reasons. First, regressive or flat taxes are more favorable to higher income earners. Secondly, Mississippi and Alabama are among the 10 lowest income tax structures in the nation. Instead, though, the comparison shows that many New Jersey upper income earners shoulder significantly less of a tax burden than their income counterparts in less tax progressive states.
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Old 11-27-2006, 04:05 PM
 
202 posts, read 992,765 times
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NJ has lower income taxes than NY, that's for sure.

It's too bad, though, that it doesn't apply to people who commute to NY for work.
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