Guides / Property Taxes / New Jersey

Property Taxes in New Jersey

Effective Rate

New Jersey has the highest average effective property tax rate in the United States. Current estimates (2025-2026) put it at roughly 2.2%-2.4% (Tax Foundation-based trackers commonly cite ~2.23%; a WalletHub-style owner-occupied-housing-value measure shows ~1.88%; some 2026 aggregators cite as high as 2.42%). Regardless of the exact methodology, every source agrees NJ's effective rate is more than double the ~0.99% national average, and NJ has held the #1 spot nationally for years. There is enormous regional variation: high-rate/lower-value counties like Camden (~3.08%) and Salem (~3.03%) sit well above lower-rate/higher-value counties like Bergen (~1.69%) and Morris (~1.80%) — the well-known NJ "tax paradox" where higher rates don't always mean higher total dollar bills.

Example: New Jersey's statewide AVERAGE property tax bill crossed $10,000 for the first time in 2025, hitting $10,095, then rose about 5% to roughly $10,570 in the most recent reporting (per NJ Division of Taxation data as covered by NJ1015/nj.com-affiliated outlets). New Jersey is the only U.S. state where the average bill exceeds $10,000/year — the next-highest state, New Hampshire, averages about $7,715. Bills vary hugely by county/town: county averages range from roughly $5,500 (Salem County, lowest) to over $14,000 (Bergen County) and even luxury towns like Allenhurst averaging near $20,000.

Exemptions

ANCHOR Program (Affordable NJ Communities for Homeowners and Renters)
Amount: Homeowners with NJ gross income up to $150,000: $1,500; homeowners $150,001-$250,000: $1,000. Renters with income up to $150,000: $450 (or $700 if age 65+).
NJ's primary homestead/renter rebate. 2026 payments (for the 2025 benefit year) begin September 15, 2026; filing deadline is November 2, 2026. Most eligible filers are auto-filed based on prior applications (Form ANC-1).
Senior Freeze (Property Tax Reimbursement)
Amount: Reimburses the dollar increase in property taxes above a locked 'base year' amount (e.g., if base-year tax was $4,100 and current tax is $6,200, the reimbursement is $2,100) — not a flat amount.
Available to eligible seniors (65+) and disabled residents meeting income limits, on their principal residence. 2026 payments begin around July 15, 2026, on a rolling schedule.
Stay NJ
Amount: Reimburses 50% of property tax bill up to a cap; after the FY2027 budget (enacted June 2026), the benefit is tiered by income: up to $6,500 (income under $100,000), $5,000 ($100,000-$150,000), $4,000 ($150,000-$200,000).
For homeowners 65+. The FY2027 budget lowered the income eligibility ceiling from $500,000 to about $200,000, cutting off higher-income seniors who previously qualified. Applied for jointly with ANCHOR and Senior Freeze via the combined PAS-1 form.

Figures vary somewhat by source/methodology (Tax Foundation vs. WalletHub vs. state DOT data) and NJ property tax data updates frequently as municipalities finalize annual budgets, so treat the ~2.2-2.4% effective rate and ~$10,095-$10,570 average bill as a current directional range rather than a single precise figure. Practical tip: NJ property taxes are set and billed at the municipal (not state) level, so actual bills depend heavily on the specific town/county — always check the local municipal tax assessor or the NJ Division of Taxation's General Tax Rates data for a specific address rather than relying on statewide averages alone. Also note ANCHOR, Senior Freeze, and Stay NJ are now filed together via the combined PAS-1 application.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Down Payment Assistance in New JerseyTransfer Tax & Closing Costs in New JerseyBuyer-Agent Agreements in New JerseySeller Disclosure Laws in New JerseyFind Agents in New JerseyHome Affordability Calculator