Overtaxed N.J. Homebuyers Are Fleeing to This Unlikely State

May 13, 2026 | nj.com

New Jersey residents are trading high taxes for mountain views. 

At River Gorge Ranch, a 2,200-home development outside Chattanooga, Tennessee, 715 homes have sold — at least 25 to buyers in the northern New Jersey and New York area. California and Illinois residents have bought even more homes. 

New Jersey and New York rank among the nation’s highest tax states, while Tennessee has no state income tax.

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NJ SEED: Tennessee may seem an unlikely destination for those fleeing NJ and the reason is not likely to be driven by the lovely scenery. or because it’s the home of Jack Daniels. NJ is one of the highest tax states in the nation and Tennessee has no income tax. Those who seek to plan for NJ’s future, need to be mindful of the demographic that is leaving the state and the reasons for doing so.