Small business in New Jersey face monumental burdens
New Jersey was founded on small business. The hope of starting a small business continues today as the “American Dream”, working hard for yourself, your family, or a group of friends and partners and reaping the benefits of that hard work.
When starting a small business you search for the best tax incentives, corporate taxes, personal income tax, property tax, sales tax, and unemployment tax. Where can you go to get the best tax break on all five of these factors? It’s not New Jersey.
New Jersey is the least tax-friendly state to start a small business. The least friendly. According to a new study by www.simplifyllc.com gathered 2023 data from the U.S. Department of Labor, Tax Foundation, and Federation of Tax Administrators New Jersey small business faces the most tax burdens in the United States.
We already know as the most populated state, New Jersey has some major tax problems, namely they are too high across the board but a real look at the numbers that will affect small businesses is eye-opening. I had no idea that the numbers were this bad.
Here is how New Jersey measured up:
The Corporate Tax Rate in New Jersey is 9% which ranks 48th in the country.
The Personal Income Tax Rate ranks 47th at a whopping 10.75%.
Property Tax in New Jersey ranks dead last at number 50 with an average of $3,538 per household.
The Sales Tax comes in at number 44 with an average of 6.63%. Although the statewide sales tax is 7% there are pockets of Urban Area Tax Incentives that reduce that overall average to 6.63%.
The only bright spot in this tax mess is the Unemployment Tax which is at 6.4% and ranks 25th in the country.
Combine all those tax factors and there is no doubt you can see why New Jersey is the least tax-friendly state for small businesses.
I’m always a glass-is-half-full person who likes to look at the positive side of a negative situation and I pride myself in finding a positive solution to the negative information that I have received. I must say this is a little overwhelming. As a very small business owner, I can certainly sympathize with those trying to make the best of it. While there was some relief provided by the state and federal government from the losses that we all experienced from the pandemic, it is still tough in 2023 to get the engines running when the obstacle of the large amount of taxes awaits you. I wish all of us good luck and hope one day that the tax burden on small businesses in New Jersey will change.
Pictures of a $16.5M private island home being sold by NJ doctor
LOOK: Do you know these 50 famous acronyms?
The post above reflects the thoughts and observations of New Jersey 101.5 weekend host Big Joe Henry. Any opinions expressed are Big Joe’s own.
