For nearly a decade, New Jersey has held a title that no state wants: the leader in outbound migration. According to the United Van Lines 49th Annual National Movers Study released in late 2025, the Garden State saw a 62.3% outbound rate, marking the eighth consecutive year it has topped the list. While the state continues to attract young professionals and “launching” families due to its proximity to New York City and Philadelphia, the data shows a massive exodus of retirees and high-earners. This persistent trend is driven by a combination of record-breaking taxes, a crushing cost of living, and a structural economic shift that makes staying in New Jersey a difficult financial calculation for those on a fixed income.
The Highest Property Taxes in the Nation
The single most cited reason for leaving New Jersey is the burden of property taxes, which consistently rank as the highest in the United States. According to 2024 data from the National Association of Home Builders (NAHB), New Jersey homeowners paid an average of $9,767 per home—over $2,100 more than the next closest state, New York. In many high-demand suburban counties, effective property tax rates hover around 2.23%, nearly double the national average. For many residents, particularly those over the age of 55, the cost of the tax bill alone can equal a second mortgage payment, prompting a mass migration to “tax-friendly” states like Delaware and Florida where property levies are significantly lower.
A Cost of Living That Crushes the Middle Class
Beyond housing, the overall cost of living in New Jersey remains a significant deterrent. According to the Bureau of Economic Analysis (BEA) Regional Price Parity data for 2026, New Jersey’s price levels are roughly 9% higher than the national average. This premium extends to almost every category of daily life; utilities in the state cost about 9% more than the national baseline, and groceries are roughly 6% more expensive. A 2024 Monmouth University Poll found that 48% of residents expressed a desire to leave the state at some point, with the “cost of living” and “the economy” cited as the primary drivers. For a single adult, the “comfort” wage in New Jersey has climbed to over $54,500 annually, a threshold that is becoming increasingly difficult for the average worker to maintain.
The Retirement Flight and the “Florida Pipeline”
The data reveals that New Jersey is becoming a “launch state”, a place where young people start their careers, but a “departure state” for those looking to enjoy their golden years. United Van Lines reports that nearly 25% of outbound moves from New Jersey are driven by retirement. High earners and retirees are the most likely to flee, with the 2022 New Jersey Migration Report highlighting that for every 34 families moving in, 100 are moving out. Florida remains the top destination, receiving nearly 25% of all New Jersey exiles. This “wealth flight” resulted in a loss of over $2.3 billion in adjusted gross income in a single year, creating a “hollowed-out” tax base that forces the state to keep rates high for the remaining residents.
Economic Headwinds and Corporate Relocations
While the job market in New Jersey remains tied to the powerhouse economies of Manhattan and Philadelphia, the state’s internal business climate is struggling. New Jersey’s tax system ranks 49th overall on the 2026 State Tax Competitiveness Index, making it one of the least attractive places for corporations to headquarter. Former industry analysts point to the relocation of major firms like Mercedes-Benz (which moved to Georgia) as a symbol of the “corporate exodus.” As high-paying jobs move to the Sun Belt and the West, the workforce naturally follows. Despite efforts like the “Stay NJ” property tax relief program, the structural reality of New Jersey’s 10.75% top income tax rate continues to push the state’s most mobile citizens toward more competitive regions.
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