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Thursday, October 3, 2013

New Jersey tops charts for property taxes

By Natalie Gilmore

According to the U.S. Census and a study by The Tax Foundation, New Jersey State and its local government bring in an average amount of $2,819 per person of real estate tax per year. Homes in Hunterdon County is at the top of the list as one of the priciest in New Jersey. According to The Tax Foundation, New Jersey is home to seven of the top ten counties in the United States with the highest Real Estate taxes. Even though New Jersey Property taxes are high, people are still moving there either for work or for a better life. However, New Jersey does offer some property relief programs that benefit Hurricane Sandy victims, Retirees and Military Veterans. Some tax relief programs include:
However, even with these tax benefits, a study by Kiplinger proved that New Jersey is towards the bottom of the list in terms of being a tax-friendly state. Let's take a look at how much property tax was collected by each state:

State and Local Property Tax Collections Per Capita

Fiscal Year 2010

StateCollections Per CapitaRank
US$1,434-
Ala.$53950
Alaska$1,8659
Arizona$1,14730
Arkansas$59849
California$1,45019
Colorado$1,60113
Connecticut$2,5223
Delaware$74245
Florida$1,50715
Georgia$1,09633
Hawaii$1,02834
Idaho$83740
Illinois$1,82710
Indiana$1,18229
Iowa$1,36723
Kansas$1,38122
Kentucky$68446
Lousiana$74843
Maine$1,78611
Maryland$1,46717
Massachussets$1,9868
Michigan$1,45318
Minnesota$1,41220
Mississippi$85339
Missouri$96037
Montana$1,29625
Nebraska$1,48716
Nevada$1,29724
New Hampshire$2,4634
New Jersey$2,8191
New Mexico$63348
New York$2,2805
North Carolina$90238
North Dakota$1,02735
Ohio$1,13032
Oklahoma$64247
Oregon$1,29226
Pennsylvania$1,26127
Rhode Island$2,0837
South Carolina$1,02236
South Dakota$1,14231
Tennesee$79542
Texas$1,56214
Utah$83741
Vermont$2,1666
Virginia$1,41021
Washington$1,25728
West Virginia$74544
Wisconsin$1,69812
Wyoming$2,6332
D.C.$3,1061

It is a testament to the quality of living in New Jersey, considering they are ranked #1 for property taxes collected, as people still continue to move their families there.

Although the taxes were high in 2010, Governor Christie has been working towards enacting some legislature that would overhaul the property tax incentives in New Jersey which he believes will “spur investment and employment within the state.”

Regardless of which approach is the correct one to take, it is obvious that something needs to be done to help lower the tax burden on individual families as well as businesses. Being ranked the #1 collector in real estate taxes is not something to brag about, and should motivate legislatures to take action.


About the author: This article was written by Natalie Gilmore with Callaway Henderson Sotheby's International Realty.   Natalie lives in New Jersey and loves to provide real estate advice to home seekers that will help them save money.