As real estate investors we need to be aware of the impact that tax has in our business. Today I would be looking at taxes from the perspective of owning a property, aka property taxes. I will be looking today closely at New Jersey. The main reason is to bring to the light one the of states with the highest property taxes in our nation. For your information, New Jersey consistently ranks highest in the nation for property-tax burdens (now averaging $7,544 per household).
Many residents have accepted these higher property taxes in the past in return for more generous local services. However, with the current economy how long can New Jerseyans continue to bear this burden? NJ.com reports a previous Star-Ledger story published earlier this month found that last year the average property tax bill, including county and school taxes, was $7,555, a jump of more than $274 from the previous year, based on taxation figures collected by the counties and reported to the state. The same analysis found that more than 100 municipalities saw double-digit increases in local taxes, and more than half increased local levies by 5 percent or more.
Another piece of information I found interesting is that New Jerseyans contribute 11.8% of their income toward just state and local taxes each year, compared to Pennsylvanians who pay 10.2% (11th highest in the nation) and Alaskans who pay 6.4% (the lowest state and local tax burden).
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