From the Star Ledger:
It’s no secret that New Jersey is not the friendliest place for retirees. It’s not the weather, the highways or even the politics. It’s the taxes.
A Kiplinger study released last week ranks New Jersey 41st when it comes to tax-friendliness for retirees. It could have been worse. Rhode Island tops the list as the least-amenable state, followed by Vermont, Connecticut, Minnesota and Montana.
“New Jersey is not that bad,” said Sandra Block, senior editor at Kiplinger’s, a financial publication.
“There are actually some aspects that are tax friendly,” she said. “New Jersey does exempt a lot of retiree income. It’s pretty generous in this respect. But property taxes are a real problem.“
According to the Tax Foundation, New Jersey has the second-highest state and local tax rate in the country, with more than 12 percent of income going to pay one tax or another. Income taxes alone for the wealthiest in New Jersey are 8.97 percent.
Property taxes vary by municipality, but with the median price of a home at $348,300, the median tax is $6,759, according to the Tax Foundation. Seven of the top 10 counties nationwide with the highest median real estate taxes are in New Jersey.
The math is simple for someone looking to get the most from their retirement funds. The median sale price of a home in the Miami-Dade area of Florida is $320,000, according to Zillow, a real estate firm, and the taxes are $4,200. That’s a $2,500 yearly savings on property taxes.