tax

New Jersey Tax Climate Ranks Worst in the Country

New Jersey once again holds the distinction of having the worst business tax climate in the country.

The Tax Foundation’s 2019 State Business Tax Climate Index¬†released today ranks the Garden State as having the most poorly designed tax structure in the country. The other states in the bottom five are California (49), New York (48), Connecticut (47), and Arkansas (46).

While tax burden is an important factor, the Index measures how efficiently a state raises revenue using 100 different variables. Kentucky saw the biggest year-over-year improvement, going from 39th to 23rd, even though its tax reform law will increase the state’s revenue collections.

Even though New Jersey’s phase-out of the estate tax improved its score on property taxes, this year’s approval of higher individual and corporate income tax rates hurt the state’s score in both of those cateogries.

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