The state’s estate tax is soon to be eliminated while the tax exemption on retirement income is increased as part of move to “retain” wealthy citizens.
As wealthy citizen reach retirement age and consider moving to warmer climates the states in the north fear they risk losing their wealthiest residents to states such as Florida with little, or no, estate taxes.
As a result, New Jersey has decided to eliminate its estate tax entirely as nj.com reports in “7 things you need to know about N.J.’s 23-cent gas tax hike deal.”
The estate tax exemption will be raised in 2017 and the tax will be eliminated completely in 2018. New Jersey will also be decreasing taxes on retirement income. These and other tax changes will be offset by increasing the state’s gas tax considerably.