Personal Finance

NJ Pays More Taxes Over A Lifetime Than Any Other State, Study Says

See the breakdown of how much NJ residents are estimated to pay in income, property, vehicle, and sales taxes through their lifetimes.

Self Financial​, a credit-building platform, calculated how much the average American will pay in personal income and other taxes throughout their lifetime.
Self Financial​, a credit-building platform, calculated how much the average American will pay in personal income and other taxes throughout their lifetime. (Shutterstock)

NEW JERSEY — Residents of New Jersey will pay the most in taxes over their lifetime than residents anywhere else in the United States, a recent study found.

Self Financial, a credit-building platform, calculated how much the average American will pay in personal income and other taxes throughout their lifetime.

The "A Life of Tax" study found that the average American will pay $524,625 in taxes, throughout their lifetime — just over one-third of their estimated lifetime earnings.

Find out what's happening in Across New Jerseyfor free with the latest updates from Patch.

Taxpayers in New Jersey pay a total of $987,117 in taxes over their lifetime, which the study found to be the highest in the country.

That amount comes out to 54.3 percent of an estimated $1,818,191 in lifetime earnings, which is also a higher percentage of earnings than residents of any other state pay.

Find out what's happening in Across New Jerseyfor free with the latest updates from Patch.

Here's the breakdown for New Jersey:

  • Property tax (Highest in nation): $564,614
  • Personal spending tax (19th in nation): $54,961
  • Income tax (6th in nation): $334,260
  • Car tax (26th in nation): $33,282
  • Total (Highest in nation): $987,117

Self's "A Life of Tax" study included income tax, vehicle tax, property tax, and sales tax in all 50 states plus Washington, D.C.

"Whether we like it or not, taxes are an essential part of any functioning economy," the authors said. "Tax dollars pay for everything from roads and infrastructure to schools and Social Security."

Overall, the five places where residents had the highest lifetime tax bills were:

  • New Jersey: $987,117
  • D.C.: $884,820
  • Connecticut: $855,307
  • Massachusetts: $816,700
  • New York: $748,199


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