A new Tax Foundation study finds New Jersey ranks third in the nation in states that rely on their property taxes for their overall tax collections.
The study finds that New Hampshire and Alaska relied most heavily on property taxes, accounting for 67.6% and 51.8% of their tax collections in FY2017 – the most recent data available.
New Jersey is third overall with 46.9% of property tax collection going to its overall tax collections.
Alabama and Arkansas landed at the other end of the spectrum, raising the smallest portion of their state and local tax revenue through property taxes: 17.3% and 18.5%, respectively.
According to Tax Foundation Policy Analyst Janelle Cammenga, a heavy reliance on property taxes does not necessarily indicate a high overall tax burden in any given state.
She cites the example of Alaska being also among the states with the lowest state and local tax collections per capita – although New Jersey is among the highest in the nation on that particular list.
To see the full Tax Foundation report, click here.
