What is the average effective property-tax rate in New Jersey?

New Jersey's statewide average effective property-tax rate is approximately 2.23% of market value, according to the Tax Foundation and Lincoln Institute of Land Policy (2024). That is the highest average effective rate of any US state. On a $450,000 home — close to the NJ median — the annual bill comes to roughly $10,035, also the highest median dollar amount in the country.

Why are New Jersey property taxes so high?

Property tax is the primary funding mechanism for New Jersey's public school system. Unlike most states that rely heavily on state income or sales tax to fund education, NJ delegates the bulk of school funding to individual municipalities, each of which sets its own millage rate. When combined with relatively high home values and a constitutional limit on state income tax diversion, the result is structurally high local property-tax rates. Municipal services, county government, and open-space preservation funds are also levied on top of the school rate.

Which New Jersey county has the highest and lowest property-tax rate?

Hunterdon County consistently carries the highest average effective rate, around 2.55%, reflecting a combination of high school spending and modest commercial ratables. Cape May County has the lowest rate in the state at roughly 0.97%, driven by the large share of seasonal vacation properties and a broader commercial tax base along the shore. Essex County (Newark area) and Camden County also rank near the top, both at approximately 2.50%. Even within counties, rates vary by municipality: Millburn Township in Essex County runs well above 2% while some shore towns in Monmouth County sit below 1.5%.

What property-tax relief programs does New Jersey offer?

New Jersey offers several relief programs. The ANCHOR Program (Affordable NJ Communities for Homeowners and Renters) replaced the former Homestead Benefit and pays eligible homeowners a rebate of $1,500 (income below $150,000) or $1,000 (income $150,001–$250,000); renters may receive $450. The Senior Freeze (Property Tax Reimbursement) locks in the base-year tax for qualifying homeowners aged 65 or older who meet income limits, reimbursing any increase above that base each year. The Veterans Property Tax Deduction provides a $250 annual deduction for eligible veterans and their surviving spouses. Apply through the NJ Division of Taxation.

How does New Jersey assess property for tax purposes?

New Jersey is one of the few states that mandates residential property be assessed at 100% of true market value (Chapter 123 of the NJ statutes). In practice, however, many municipalities reassess infrequently, so the equalization ratio — published annually by the NJ Division of Taxation — may show a ratio below 100%. The county board of taxation applies this ratio when equalizing values across municipalities for county-wide purposes. The effective rate in this calculator sidesteps those mechanics by expressing tax paid as a percentage of current market value, which is the standard cross-state comparison metric.

When are New Jersey property taxes due?

New Jersey property taxes are billed quarterly with payments due on February 1, May 1, August 1, and November 1 each year. A grace period of 10 days typically applies before interest accrues. Most homeowners with a mortgage escrow account pay through their lender, who remits to the municipality. If you pay directly, check your municipality's tax collector for the exact schedule, as some towns send combined annual or semi-annual bills.

New Jersey Property Tax Calculator

The New Jersey property tax calculator gives you a fast, accurate estimate of your annual and monthly property-tax bill based on your home value and the state’s average effective rate. Whether you are buying a home in Bergen County, comparing towns before relocating, or planning your annual budget, you can see the numbers clearly in seconds — no spreadsheet required.

How the calculation works

The effective property-tax rate is the simplest and most comparable way to express property-tax burden:

Effective rate = total tax paid ÷ market value

This calculator applies that rate directly to your entered home value:

Annual tax = home value × (effective rate ÷ 100)

Monthly tax is the annual figure divided by 12. The New Jersey statewide average effective rate for 2024 is 2.23% — the highest of any US state. That means NJ homeowners pay an average of $22.30 per year for every $1,000 of their home’s market value.

New Jersey formally assesses residential property at 100% of true market value (Chapter 123), so unlike states that assess at a fraction of market value (Alabama assesses at 10%, for example), the NJ assessed value and market value are nominally equivalent — though municipally-set millage rates produce the wide county-to-county variation you see in the county table below.

Worked example

Suppose you purchase a home in Bergen County for $600,000. Bergen County’s average effective rate is approximately 2.08%.

Annual property tax: $600,000 × 0.0208 = $12,480
Monthly property tax: $12,480 ÷ 12 = $1,040
Tax per $1,000 of value: $20.80

Now compare to the statewide average of 2.23%: the same $600,000 home at the state average would cost $13,380 per year — nearly $900 more annually purely from being in a higher-rate municipality. At Hunterdon County’s 2.55% rate, the annual bill climbs to $15,300, or $1,275/month.

Home value	Eff. rate	County	Annual tax	Monthly
$350,000	2.23%	NJ average	$7,805	$651
$450,000	2.23%	NJ average	$10,035	$836
$600,000	2.08%	Bergen	$12,480	$1,040
$600,000	2.55%	Hunterdon	$15,300	$1,275
$400,000	0.97%	Cape May	$3,880	$323

All figures are calculated in your browser — nothing is uploaded or stored.

Why New Jersey has the highest property-tax rate in the US

New Jersey’s 2.23% average effective rate sits well above all other states, with Illinois (2.07%) and Connecticut (1.79%) as the next closest. Several structural reasons drive this:

School funding model. NJ relies on local property tax to fund the majority of public-school expenditure. Each municipality sets its own school levy, and many suburban districts maintain well-funded schools through high millage rates rather than through state redistribution.
Dense municipality structure. NJ has 564 municipalities across a small land area, each with its own government, services, and tax rate — creating significant duplication of services compared with states that rely more on county-level administration.
High home values. Rising home prices in the New York and Philadelphia metro areas have pushed market values up substantially, but because NJ’s assessments nominally track market value, the tax base rises with it.
Limited alternative revenue. New Jersey’s constitution restricts how state income-tax revenue can be directed, meaning municipalities cannot easily substitute state funding for local levies.

County rates vary significantly — what to check

Even within a single county, rates can swing by more than a full percentage point between neighboring municipalities. Before relying on any estimate, verify:

Your municipality’s current tax rate — published annually by your local tax collector and the NJ Division of Taxation.
Your property’s assessed value vs. market value — check the equalization ratio for your municipality; if it differs from 100%, your bill will be based on the adjusted assessed value.
Relief programs you qualify for — the ANCHOR rebate, Senior Freeze, and Veterans Deduction can meaningfully reduce your net annual cost.

This calculator gives you the right ballpark for budgeting, comparison shopping, and mortgage-payment planning; your municipal tax collector and the NJ Division of Taxation give you the exact figure.