New Jersey tax tidbit: rich get relief

March 18, 2010

New Jersey flag Relax wealthy New Jersey residents. The state's millionaire's tax expired on Dec. 31, 2009. Now the Garden State's top tax rate is 8.97 percent on annual incomes above $500,000.

But all you rich folks still have to deal with 2009 taxes. Last year, the 8.97 percent rate was replaced by three rates:

  • 8 percent on earnings between $400,001 and $500,000;
  • 10.25 percent on income between $500,001 and $1 million; and
  • 10.75 percent on folks raking in more than a million dollars a year.

Opponents of the temporary 10.75 percent tax say good riddance. Now the hope is that with a new governor, the 2004 rate hikes that created the current tax levels (and were called a millionaire's tax back then) will be revisited. That, they say, could prompt the wealthy who moved out of the state and those who opted not to move to New Jersey in the first place to reconsider.

If they do, perhaps the MTV production crew there recording the antics of Snookie and the others on Jersey Shore can capture the return of the wealthy.

It might not be as dramatic as the cable quasi-reality show, but it certainly would be something New Jersey officials would like to see documented.

Tax trip around the United
States:
This post is part of our series highlighting tax
information from the 50 U.S. states and Washington, D.C.
You can read other state tax blurbs at our Complete menu of tasty state tax tidbits.

The State Tax Departments page provides links to official state
and District of Columbia revenue Web sites so that you can find out more about
your home's tax laws and filing requirements.

As we work
through the 2010 tax season, a different state will be featured each day as
noted in Don't forget your state taxes! Check back to see what tax
tidbit we share about your home.

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