It’s getting more expensive to live in New Jersey, and a new study shows that the Garden State is now the Property Tax State, with the highest tax bracket for homeowners in the entire country.
The average property tax bill in the U.S. is $2,969 each year, according to the U.S. Census Bureau, cited in a study by WalletHub. Analysts studied the 50 states plus Washington, D.C., looking at real estate and vehicle property taxes, and they asked a panel of property tax experts for insight.
The state with the lowest property tax is Hawaii, whose homeowners pay $820 per year on taxes on a $303,400 home (the median home value in the U.S. as of 2023, the year of the most recent available data). The state median home value is $808,200, and the annual taxes on that home would be $2,183.
In comparison, New Jersey is No. 51 on the list – that’s right, we are last – with a $6,670 annual payment on a home worth $303,400. For a state median home valued at $427,600, a homeowner pays $9,541 per year on property taxes.
WalletHub used U.S. Census Bureau data updated in January, divided the median real estate tax payment by the median home price in each state, and used the resulting rates to obtain the dollar amount paid as real estate tax on a house worth $303,400.
High property taxes aside, New Jersey gets high marks in other areas. Somerset County placed No. 13 on the Best Counties for Families in America, according to Niche. With an overall grade of A+, its public schools and amenities for families also scored A+ ratings. The 346,000 residents have a great selection of parks, libraries, YMCAs, historical sites and restaurants to choose from.
Middlesex County made the Top 25, coming in 23rd, also with an A+ ranking for its schools, family attractions and overall ratings. Home to several colleges – including Rutgers University – museums, cute downtowns and suburban neighborhoods, Middlesex has its share of nightlife, diversity and job opportunities for its 861,000 residents.
By the time the kids are grown and out of the house, many Jerseyites are ready to leave the state due to its high cost of living. Bankrate.com named its list of the best places to retire, and New Jersey is 35 out of 50. NJ ranks 40th in terms of affordability, 28th for cost and quality of healthcare, 13th for the well-being of its residents, 19th for the weather and fourth in terms of crime.
Bankrate examined several public and private datasets, such as the Council for Community and Economic Research, the Tax Foundation, the U.S. Census Bureau, the National Oceanic and Atmospheric Administration, the National Incident-Based Reporting System and Summary Reporting System submitted to the FBI.
For those who want an affordable retirement option in NJ, GoBankingRates.com says Mays Landing is optimal. The average income of households with retirement income is $37,576 and the average income of households with Social Security income is $29,306. It only costs about $1,828 per month to enjoy the Jersey Shore town, and you’ll shell out about $1,978 for your monthly morgage on the average single family home value of $332,047.
