New Jersey has long held the distinction of having some of the highest property taxes in the nation, a fact of particular importance to seniors on fixed incomes. The latest data from the Tax Foundation’s 2025 report reveals the current New Jersey property taxes across the Garden State’s 21 counties.
Understanding New Jersey Property Taxes: The Backbone of Local Government
Before diving into New Jersey’s specific situation, it’s important to understand that property taxes are the primary funding mechanism for local governments nationwide. In fiscal year 2022, property taxes made up 27.4 percent of total state and local tax collections in the United States—more than any other revenue source—and accounted for a substantial 70.2 percent of local tax collections.
These taxes directly fund essential services that seniors rely on daily: schools, roads, police departments, fire and emergency medical services, and other community resources. When you pay your property tax bill in New Jersey, you’re primarily supporting local services rather than state operations.
The Burden of New Jersey Property Taxes
For seniors considering where to live in New Jersey or those wondering how their current tax bills compare to neighboring counties, understanding the effective tax rates and median property tax payments is essential.
Highest New Jersey Property Tax Rates
The counties with the highest effective property tax rates in New Jersey are:
- Camden County: 3.08% – The highest in the state
- Salem County: 3.03%
- Gloucester County: 2.81%
These rates mean homeowners in these counties pay over $3,000 annually for every $100,000 of home value.
Lowest New Jersey Property Tax Rates
For those seeking tax relief, these counties offer the lowest effective rates:
- Cape May County: 1.32% – The lowest in the state
- Bergen County: 1.69%
- Monmouth County: 1.77%
- Ocean County: 1.77%
Cape May County stands out with a rate less than half of Camden County’s, making it potentially attractive for tax-conscious seniors.
Actual Dollar Amounts Matter
While percentages are informative, the actual amount paid depends on home values as well:
Highest Median New Jersey Property Taxes Paid
Several counties have reached the $10,001 reporting ceiling:
- Bergen County
- Essex County
- Hunterdon County
- Monmouth County
- Morris County
- Passaic County
- Somerset County
- Union County
Most Affordable Tax Bills
The counties with the lowest median property tax payments are:
- Cape May County: $5,233
- Cumberland County: $5,048
- Ocean County: $6,499
Property Values vs. Tax Rates
The relationship between home values and tax rates reveals interesting patterns:
- Bergen County has the highest median home value ($593,200) but a relatively low tax rate (1.69%)
- Cumberland County has the lowest median home value ($205,600) but a higher tax rate (2.46%)
- Salem County combines a low median home value ($223,000) with one of the highest tax rates (3.03%)
New Jersey Property Tax Structure: The Big Picture
While some states with high property taxes—like New Hampshire and Texas—use them as alternatives to other major tax categories, New Jersey takes a different approach. The Garden State imposes high property taxes alongside high rates in other major tax categories like income and sales tax. This creates a particularly challenging environment for seniors living on fixed retirement incomes.
Despite the financial burden, experts like Joan Youngman of the Tax Foundation note that well-designed property taxes can be considered “good taxes” because they are transparent, simple, and stable. They also tend to follow the benefit principle of taxation: those paying the tax bills are generally those benefiting from the services they fund.
What This Means for Seniors
For retired homeowners on fixed incomes, property taxes represent a significant ongoing expense. When considering where to live in New Jersey:
- Ocean County deserves special mention for seniors – it combines a relatively low tax rate (1.77%) with moderate housing values and has the third lowest median tax bill in the state.
- Cape May County offers the lowest effective tax rate and among the lowest median tax bills, although housing values are higher than some other counties.
- Northern counties like Bergen, Morris, and Somerset have higher housing values and tax bills but relatively moderate tax rates.
Important Considerations
Remember that New Jersey does offer property tax relief programs specifically for seniors, including:
- The Senior Freeze (Property Tax Reimbursement) program
- ANCHOR program
- The Homestead Benefit program
- Veterans deductions and exemptions
- Various municipal programs
Eligibility requirements vary by program, and applications must typically be filed annually. Jersey Senior Weekly recently covered the new combined application NJ PAS-1 for senior property tax relief.
Looking Beyond County Boundaries
The Tax Foundation notes that comparing property taxes across states can be difficult because they are almost always levied locally with rates that aren’t directly comparable. However, New Jersey consistently ranks among the states with the highest effective property tax rates nationwide, not just in certain counties.
This statewide trend means that even New Jersey’s “low-tax” counties may have higher property tax burdens than the average county in many other states. Seniors contemplating a move might consider looking beyond state boundaries for more significant property tax relief.
Understanding the property tax landscape is crucial for seniors making housing decisions in New Jersey. Whether you’re considering relocating within the state or evaluating your current situation, these figures provide valuable context for financial planning in retirement. While property taxes fund essential local services that benefit residents, they represent a substantial ongoing cost that requires careful consideration in retirement planning.
For the complete data and exact dollar figures for each county, please visit the Tax Foundation’s website.
