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A recent study by Bankrate highlights New Jersey as one of the hardest states for residents to save money. The study, which analyzed the easiest and hardest states to save money in 2025, considered factors like cost of living, state and local taxes, and employment growth. New Jersey ranked 45th in the tax category, with a state and local tax rate of 13.2 percent, and 44th in the local economy ranking.
The high cost of living and significant tax burden contribute to the challenges residents face when trying to save money. According to Bankrate's study, the state's interest rate environment is slightly better, ranking 29th overall, with an average money market account (MMA) rate of 1.2 percent annual percentage yield (APY) and an average certificate of deposit (CD) rate of 1.8 percent APY. However, these rates still make it difficult for residents to grow their savings.
New Jersey's challenges in saving money are shared by other states with high costs of living and taxes, such as California, which ranks as the fourth-hardest state to save money. The study underscores the importance of location in financial planning and saving strategies.