Yup.

Most high income earners don’t even work in NJ.

And almost the entire states population is no more than an hour from an at least one other state, so sales tax can’t be much higher than an adjacent state.

People also forget our effective sales tax is actually lower than it’s listed since so many daily items like food are excluded. Not to mention UEZ’s are a short drive for many (and walk for those who live in JC).

If sales taxes were higher we’d all just cross state lines for any bigger purchases.

Property taxes are basically all NJ has to generate revenue.

That’s the economics of being a small landmass between 3 major metro areas (people forget some in south Jersey commute go Baltimore/Washington for work).

NY meanwhile can use sales tax and income tax much more heavily. Most of its population can’t easily travel to another state. Even in NYC most people aren’t capable of easily crossing over and taking goods back, lack of vehicles, or too much traffic. NJ to Queens is a trek for example, by car or transit. LI to NJ is a real terrible drive. So people won’t bother for the most part. NJ does get some Brooklyn/SI residents in our malls for things like back to school shopping and Ikea.