New research from the Pew Charitable Trusts indicates that New Jersey ranks fifth in reliance on state tax collections. The study, which used FY22 budget data for a state-by-state comparison of revenue sources, revealed that 54.8% of New Jersey's revenue comes from state tax collections. This places the state behind Nevada (55.2%), Minnesota (57.6%), Connecticut (58.4%), and California (60.5%).
On a national scale, the average percentage of revenue from state taxes was 48.3%. Seventeen out of fifty states, including New Jersey, surpassed this average in FY 2022.
In contrast, sixteen states collected more federal funds than they did state tax revenue. Nationwide, federal funds averaged 36.4% of revenues but were significantly lower in New Jersey at 29.5%. Louisiana was the most reliant on federal funds, with 50.5% of its revenue coming from the federal government.
The national percentage of revenue collected from service charges stood at 8.9%, with New Jersey slightly below this average at 8%.
For an infographic detailing various revenue sources – including state taxes, federal funds, service charges, miscellaneous and local funds – visit the Pew Charitable Trusts website.
