New Jersey property taxes are expensive, no doubt about it.
In 2024, the average homeowner spent $10,095 in property taxes, according to the most recent state figures.
That’s higher than a $10,000 limit the federal government put in place in 2018 for how much you can deduct in state and local property taxes each year on your federal income tax return, more commonly known as the SALT deduction.
Steep taxes are not necessarily surprising. New Jersey is sandwiched between New York City and Philadelphia, with all the perks of those two cities.
Proponents of the state argue that New Jersey boasts better quality schools, access to universities and major talent pools, top transit hubs including the ports of Newark, Interstate 95, and some of the nation’s busiest airports. Plus great food!
Many towns with higher property taxes lack other revenue sources, such as businesses or corporate headquarters, said Marc Pfeiffer, a senior policy fellow at Rutgers University’s Bloustein School of Planning and Public Policy, who studies local government in New Jersey.
So instead, municipal services — from the police department to the schools — are largely funded through property taxes alone, Pfeiffer said…
Meanwhile, Democratic gubernatorial nominee Rep. Mikie Sherrill, D-Montclair, proposed more shared services among towns, such as municipal courts and schools.
But shared services often yield savings only on a case-by-case basis at the local level rather than statewide, said Rutgers’ Pfeiffer, while Ciattarelli’s proposal for an alternating property tax rate could run afoul of the state constitution.
“You can’t give some people a lower rate than other people,” Pfeiffer said. “You have to assess everybody at the same standard.”