How Long You Have to Work in NJ This Year Just to Pay Off All Taxes
United States residents have to work until April 23 in order to pay off their total tax burden for the year.
If you think that's depressing, grab some tissues.
In New Jersey, so-called Tax Freedom Day does not arrive until May 13 — 133 days into the year. The only state with a later Tax Freedom Day is Connecticut.
Tax Freedom Day — a term coined by the Tax Foundation — represents the date on which residents have earned enough to pay all federal, state and local taxes for the year.
In Mississippi, that day arrived on April 5. It was April 7 in Tennessee and April 8 in South Dakota.
"Sometimes it's hard to describe to folks just how large the tax burden is in this country," said Scott Drenkard, Tax Foundation's director of state projects.
New Jersey residents will pay 36 percent of their incomes to federal, state and local taxes in 2017, according to the tax policy nonprofit. On a national level, 31 percent of income goes out the door for tax purposes.
Tax Freedom Day in New Jersey landed on May 12 in 2016 and May 13 in 2015.
"Because of the progressivity of the federal income tax, more New Jerseyans pay a higher portion of their income to the federal government and that gets reflected here," said Drenkard, noting New Jersey is a relatively high income state.
New Jersey's late arrival to Tax Freedom Day can also be attributed to the state's highest-in-the-nation property taxes.
Along with New Jersey and Connecticut, the northeastern states of Maryland, Massachusetts and Rhode Island are among the states with the latest dates for Tax Freedom Day.