TRENTON-For the seventeenth consecutive year, the average income of households moving into New Jersey from other states is higher than that of households moving out of New Jersey. The median adjusted gross income of households moving to New Jersey from other states was $34,081; for those leaving it was $31,491. The information comes from IRS annual in- and out-migration data for all 50 states, which recently became available for 2005.

"This suggests that the state income tax increase of 2004 is not having a significant impact on who is moving into, or out of New Jersey," said NJPP President Jon Shure.

In a report issued in October, NJPP called on the state to determine how much movement of upper-income households from New Jersey to other states has taken place since the top state income tax rate went up to 8.97% from 6.37% in 2004. In the absence of such information, there is a danger that tax policy will be made on the basis of rumors, anecdotes and threats regarding the wealthiest New Jersey taxpayers.

The tax increase affected only income greater than $500,000-close to 50,000 households, or just over 1% of households in New Jersey.

The IRS data for 2005 show that the three states from which people are most likely to move to New Jersey continue to be New York, Pennsylvania and Florida. As has historically been the case, those also are the states to which people are most likely to move from New Jersey

IN- AND OUT -MIGRATION DATA FOR NEW JERSEY

TAX REFORM

WORK & WAGES

BUDGET & FISCAL POLICY

TRANSIT ISSUES

ECONOMIC DEVELOPMENT

VOTING & GOVT REFORM

© 2008 New Jersey Policy Perspective