Move to Alaska.
That’s not the advice the Tax Foundation has for New Jersey residents, but according to its latest study of state tax rates, New Jersey is No. 2 nationally in terms of overall tax burden, while the 50th state is also the least taxed as a percentage of income.
New York holds the top spot in terms of carrying the highest state-local tax burden, according to the Foundation study. Connecticut checks in at No. 3, making New York, New Jersey, and Connecticut the only three states in which residents shoulder a burden of more than 12 percent of their income paid in state and local taxes.
These findings come out as the state is in the midst of a tug of war over tax cuts. Gov. Chris Christie wants an income tax cut. Democrats say they oppose any tax reduction unless revenues are there to support it.
Other findings from the Tax Foundation, a research group based in Washington, D.C., which has published these kind of local/state tax burden findings for nearly 20 years:
*After Alaska, the next in line to be lowest-taxed are South Dakota, Tennessee, and Louisiana.
*Pennsylvania ranks 10th with a tax burden of 10.2 percent.
*Since 2000, state and local burdens have increased from 9.3 percent to 9.9 percent. During the 2010 fiscal year, however, burdens remained fairly stable, only decreasing slightly from their 2009 levels.