New Jersey Property Tax Calculator
New Jersey owns the unenviable top of the property tax rankings: an effective rate of about 2.23% on owner-occupied housing — roughly two and a half times the U.S. average — and an average annual bill that crossed $10,570 in 2025, the highest of any state. Some towns now average over $20,000 a year. This is the number that shapes every New Jersey housing decision, from what a monthly payment really means to where within the state a move lands on the budget.
Estimate your bill with the New Jersey preset below, then refine it with your town's actual figure — the spread between municipalities inside New Jersey is among the widest in America, and your exact town, not the state average, determines the bill. The sections below cover why the rate is structurally high, and the three rebate programs — ANCHOR, Senior Freeze and Stay NJ — that return part of it after the fact.
Market value — what it would sell for, not your purchase price from years ago.
Loaded from the selection — override with your county's actual rate (last year's bill ÷ value).
Homestead and similar exemptions remove part of the value from taxation — many states offer 20-50% to owner-occupants.
Annual property tax
$7,805.00
2.23% effective rate on $350,000.00 taxable value.
- Monthly escrow
- $650.42
- Effective vs statutory
- why this rate
What the lender collects each month to pay this bill — this is the 'T' in your PITI payment.
Effective = taxes actually paid ÷ home value. It absorbs assessment ratios and millage math, so comparing states needs no re-derivation.
Starting values are set for a typical new jersey scenario — change any field to match yours. Need the plain version? Property Tax Calculator.
America's highest, by a wide margin
The same $350,000 house, priced across the states this site models — New Jersey sits at the top, and the runner-up is not close in dollar terms once average home values are considered.
| State | Effective rate | Annual bill | Monthly escrow |
|---|---|---|---|
| New Jersey | 2.23% | $7,805 | $650 |
| Illinois | 2.07% | $7,245 | $604 |
| U.S. average | 0.91% | $3,185 | $265 |
| California | 0.71% | $2,485 | $207 |
Why the rate is structurally high
New Jersey's bill is the product of structure, not profligacy — three forces stack onto every property:
- School funding is local. New Jersey runs more than 600 school districts, and the school levy is the largest line on nearly every bill — the state supplements, but the property tax carries the weight.
- Home rule multiplies the stack. Around 560 municipalities and 21 counties each levy their own taxes on top of the school district, and small municipalities mean small tax bases sharing fixed costs.
- Relief comes as rebates, not rate cuts. Rather than restructuring the tax, New Jersey returns money after the fact through the programs below — the bill stays high and the check arrives separately, which is why every New Jersey household should know the rebate calendar as well as the tax calendar.
The relief stack: ANCHOR, Senior Freeze, Stay NJ
Three programs return part of the bill, each with its own eligibility and calendar. They stack, and none requires action at closing — they run through the Division of Taxation:
- ANCHOR: the headline rebate — up to $1,500 for homeowners with income up to $150,000 and up to $1,000 up to $250,000 (renters qualify too). Most homeowners under 65 who file a NJ-1040 are filed automatically; the rest apply by the September 15 deadline on the state's portal.
- Senior Freeze: reimburses eligible residents 65 and older (or disabled) for property tax increases — your bill effectively freezes at the year you qualify. The 2025 income limit was $172,475; you must requalify each year.
- Stay NJ: the newest program, promising eligible seniors a benefit of up to half their property tax bill, layering on top of ANCHOR and Senior Freeze — New Jersey's answer to the retiree exodus its tax bills drive.
Frequently asked questions
- How much is property tax in New Jersey?
- The state's average effective rate is about 2.23% — a $350,000 home pays roughly $7,805 a year, or $650 a month. The statewide average actual bill reached $10,570 in 2025, the highest in America, and 23 towns now average over $20,000.
- Why is property tax so high in New Jersey?
- Structure: local school funding (600+ districts), home rule (560 municipalities and 21 counties each levying their own tax), and small municipalities sharing fixed costs. The state returns part of the bill through rebates like ANCHOR rather than reducing the underlying rate.
- What is the ANCHOR property tax rebate?
- New Jersey's main rebate program: up to $1,500 for homeowners with income up to $150,000, up to $1,000 up to $250,000, and $450 for renters ($700 if 65 or older). Most homeowners under 65 who file a NJ-1040 are filed automatically; everyone else applies by the state's September deadline.
- What is the New Jersey Senior Freeze?
- A program that reimburses eligible residents 65 and older (or disabled) for property tax increases — your effective bill freezes at the level of the year you first qualify. The income limit for the 2025 tax year was $172,475, and you must requalify annually to keep the freeze.
- Do property taxes vary much within New Jersey?
- Enormously. Towns across the street from each other can differ by thousands of dollars a year because each municipality and school district sets its own levy. The state average is only a starting point — your town's actual rate, or last year's bill divided by your home's value, is the number that matters.
- When are New Jersey property taxes due?
- Quarterly: February 1, May 1, August 1 and November 1, with a 10-day grace period before late charges in most municipalities. With a mortgage, the lender collects one-twelfth monthly into escrow and pays each quarter — the monthly figure this calculator shows.