(The Center Square) – New Jersey residents pay the highest property taxes in the nation, according to a new report, and the amount has gone up since last year.
According to data from the New Jersey Department of Community Affairs, 2019 property taxes increased more than 2 percent compared to 2018. Last year, the average homeowner paid $8,953 in real estate taxes, while in 2018, the amount was $8,767.
The tax burden on New Jersey residents has made it a state that is actually losing wealthier residents, according to a Fox Business report. That’s due in part to a $10,000 limit on state and local tax deductions. In more prosperous areas, property taxes often exceed that deduction.
In Union County, for example, the property taxes were more than $17,000 in Westfield Township, and topped $18,200 in Summit City.
In Morris County, property taxes in Mendham Township were more than $19,500.
A previous report on Fox Business also found that at 68.5 percent, New Jersey had the greatest percentage of outbound migrations in the country last year. Almost half of the migrations had income at levels of $150,000 or higher.
The current property tax level is twice what homeowners were paying two decades ago, according to nj.com.
Gov. Phil Murphy’s office released a statement on the latest property tax figures: “We’re delivering on our promise to provide property tax stability while restoring New Jersey’s fiscal standing and growing our economy,” Murphy said.
In his recent budget address, Murphy also mentioned efforts to stabilize property taxes for middle class and senior homeowners.
Meanwhile, Murphy also has promoted further revenue opportunities for the state by taxing residents who make more than $1 million at 10.75 percent, up from 8.97 percent. The so-called millionaire’s tax, which is part of the $40 billion fiscal 2021 budget, would raise roughly $494 annually, according to estimates from the governor’s office.