New Jersey has the highest property taxes in America at 2.23% effective rate, while Pennsylvania averages 1.30%. On a $500,000 home, you'd pay $11,150/year in New Jersey versus $6,500 in Pennsylvania—saving $4,650 annually. Many NJ residents relocate to eastern PA counties (Bucks, Northampton) for lower taxes while maintaining access to Philadelphia and NYC job markets.

By CountryTaxCalc Research Team

Last Updated: March 2026

The Big Picture

🏖️ New Jersey

2.23%

Highest in Nation

Nation's highest property tax rate

🔔 Pennsylvania

1.30%

Avg Effective Rate

Varies widely by county (0.83%-1.98%)

Typical Annual Savings

At $500,000 home income:

$4,650

That is $388/month back in your pocket!

Tax Savings by Income Level

IncomeNJ TaxPA TaxSavings10-Year
$300,000 home $6,690$3,900$2,790$27,900
$400,000 home $8,920$5,200$3,720$37,200
$500,000 home $11,150$6,500$4,650$46,500
$750,000 home $16,725$9,750$6,975$69,750
$1,000,000 home $22,300$13,000$9,300$93,000
$1,500,000 home $33,450$19,500$13,950$139,500

New Jersey Pros and Cons

✅ Pros

  • Top-ranked public schools
  • NYC/Philadelphia job access
  • Strong property value appreciation
  • Shore communities

❌ Cons

  • Highest property tax in nation (2.23%)
  • Median tax bill $9,541/year
  • High cost of living overall
  • Limited relief programs

Pennsylvania Pros and Cons

✅ Pros

  • Much lower property taxes
  • No sales tax on groceries/clothing
  • Philadelphia/NYC commutable
  • Lower overall cost of living

❌ Cons

  • 3.07% flat income tax
  • Local wage taxes (up to 3.8%)
  • Some counties approach NJ rates
  • School quality varies by district
💡

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Frequently Asked Questions

Q: Why are New Jersey property taxes so high?

New Jersey funds public schools almost entirely through local property taxes rather than state funding. This creates a direct link between property taxes and school quality. The state has 565 school districts (many small), each requiring separate administration. Combined with high home values, this results in the nation's highest property tax burden.

Q: Which Pennsylvania counties have the lowest property taxes?

Philadelphia County has one of PA's lowest effective rates at 0.83%. Forest County averages just $860/year. Generally, rural central PA counties have lower rates than suburban Philadelphia counties. Delaware County (1.98%) and Chester County approach New Jersey levels.

Q: Is it worth moving from NJ to PA for property tax savings?

For most homeowners, yes. A $500K home saves $4,650/year in property taxes. However, PA has a 3.07% income tax (vs NJ's progressive 1.4%-10.75%), so high earners should calculate total tax burden. PA also has local wage taxes up to 3.8% in some areas.

Q: What property tax relief exists in New Jersey?

NJ offers the ANCHOR program (property tax rebate up to $1,750), Senior Freeze for qualifying seniors, and veterans exemptions. However, these provide modest relief against $9,500+ median annual bills. Pennsylvania offers homestead exclusions and property tax/rent rebates for seniors.

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