The recent NJBIZ editorial on New Jersey’s reputation as “a lousy place to retire” highlighted our state’s 38th place ranking by Bankrate.com based on several factors, including cost of living and taxes.
While New Jersey is undeniably an expensive place to live, the editorial - and likely the Bankrate study – failed to account for several key tax reforms that will greatly improve our state’s standing as a financially viable place to retire in the coming years.
In fact, 86 percent of all New Jersey retired married couples will see their state income taxes eliminated completely by the year 2020 under new tax reforms recently signed into law. This significant tax cut applies to all retired individuals and married couples filing jointly with incomes of up to $75,000 and $100,000. And starting next year, veterans can claim an additional $3,000 exemption on their state income taxes.
Another extremely significant factor in keeping more retirees and for the state’s overall economy is the elimination of New Jersey’s worst-in-the-nation estate tax. Retirees and small business owners will no longer be forced to flee to other states to avoid this burdensome “death tax” which will be phased out by January, 2018.
Clearly, too many New Jerseyans have moved away from their homes, family and loved ones because they simply cannot afford to retire here. This migration has a dramatic impact on our state’s budget and overall economy. Recent IRS data showed a 10-year net outflow of $19 billion in adjusted gross income to other states.
With these significant tax reforms, we are working to reverse that trend by making New Jersey a much more affordable place in which to live and retire. Reforming our state’s tax structure makes New Jersey more competitive with other states, more fiscally responsible, and ultimately a great place to retire. The recent reforms may prove to be transformative for New Jersey. A “game changer”.
Sincerely, State Senator Joe Kyrillos, 13th Legislative District