A homeowner’s guide to property tax in New Jersey

New Jersey property taxes fund critical services from public education and emergency responders to sanitation and infrastructure, making them essential to the community.  Residents in this state shoulder some of the nation's highest property taxes in the U.S., with rates that fluctuate significantly across municipalities. If you're a current homeowner or plan to buy in the Garden State, understanding how property taxes are calculated and paid is crucial to managing your finances. This article breaks down property taxes in New Jersey to help you plan and budget.

How much is property tax in New Jersey?

As of 2026, the average effective property tax rate in NJ is 2.23%, the highest in the country. An effective property tax rate estimates the percent, on average, of a property’s value that’s paid annually in taxes.

That said, property tax rates vary by county and even from year to year. For example, New Jersey’s effective property tax rate jumped from 1.73% in 2022 to 1.77% in 2023. By 2024, the average homeowner’s property tax bill in New Jersey reached $10,000 for the first time ever.

Is property tax in New Jersey higher than in other states?

New Jersey had the second-highest effective property tax rate in the country in 2023 at 1.77% but moved to the top spot in 2024 with a rate of 2.23%.

Other nearby states weren’t far behind:

• Illinois (2.08%)
• Connecticut (1.79%)
• New York (1.40%)

Where is property tax the highest in New Jersey?

The New Jersey county with the highest effective property tax rate in 2023 was Camden County. Here’s a list of the top five NJ counties for the highest effective property tax rate:

• Camden County (3.08%)
• Salem County (3.03%)
• Gloucester County (2.81%)
• Warren County (2.52%)
• Mercer County (2.51%)

Meanwhile, the NJ counties with the lowest effective property tax rates include:

• Cape May County (1.32%)
• Bergen County (1.69%)
• Monmouth County (1.77%)
• Ocean County (1.77%)
• Morris County (1.80%)

In terms of dollar amount, counties like Union County and Bergen County had the highest median property tax bill in 2023: $10,001 for both.

New Jersey counties with the highest median property tax bills tend to be those located nearest New York City, where real estate values are higher. Even if a county has a lower tax rate, the median property tax bill may still be higher where homes are more expensive.

How property taxes in New Jersey are calculated

In New Jersey, each County Board of Taxation sets the property tax rate using three factors:

• Ratables: This is the total assessed value of all taxable property in a town based on work done by a municipal assessor.
• Tax levy: This is the amount of money that a town needs to raise for the approved budget of a taxing district or other dedicated purposes.
• Tax rate: This is the property tax rate that will generate the needed tax levy from the available ratables. It’s calculated by dividing the tax levy by the ratables.

New Jersey practice is to calculate the tax rate per $100 of value, which allows the tax rates to be shown in pennies. Thus, the complete tax rate calculation would look like this: tax levy / (ratables/ 100).

For example, let’s say the tax levy is $10 million and the ratables are $1 billion. In this case, the tax rate would be $1 per $100, or 1% ($10 million / [$1 billion/100]).

To calculate the property taxes on an individual property, use the following formula:

(Assessed Value / 100) x Tax Rate

With a 1% property tax rate, a property with a $300,000 assessed value would incur a $3,000 annual property tax bill ([$300,000/100] x 0.01).

New Jersey property taxes must adhere to a “Chapter 123 property assessment test.” It helps ensure property taxes are not too high or too low by requiring your property’s assessment value to be within 15% of the municipality’s “Common Level,” which represents a percentage of true market value for all assessments within the municipality.

How to pay property tax in New Jersey

New Jersey homeowners can pay property taxes in a few ways. One is through your mortgage, which you must arrange through your lender when you sign your loan paperwork. In this case, the lender puts part of your monthly payment in an escrow account set aside for property taxes (and usually homeowners insurance), then pays them for you every 3-6 months.

In addition to your mortgage rate, property taxes and homeowners insurance will impact the total payment you make for housing. If you get a fixed-rate mortgage when you buy a home in New Jersey, the cost of your principal and interest will remain the same, but your property taxes and homeowners insurance may increase each year.

If you decide not to escrow your property taxes, you can pay property taxes directly to your county. For example, in Jersey City, residents can pay property taxes in person, via mail, or online. They’re due February 1, May 1, August 1, and November 1 of each year.   

Bottom line: New Jersey property taxes are higher than in most states

While New Jersey’s property taxes are among the highest in the country, understanding how they’re calculated and paid can help you better manage this expense. Whether you’re buying your first home or you’re already a New Jersey homeowner, factoring your property taxes into your monthly budget is key to financial planning.

If you’re ready to take the next step toward buying a home, you can reach out to Rocket Mortgage to learn more about your loan options.