Moving from NJ to Florida: Property Tax Savings 2026

Moving from New Jersey to Florida: Property Tax Savings 2026

For many New Jersey homeowners, the combination of the nation's highest property taxes and a state income tax rate up to 10.75% makes Florida an appealing destination. Florida has no state income tax and property taxes that are significantly below New Jersey's — particularly for homeowners who claim the $50,000 homestead exemption and benefit from the Save Our Homes 3% cap that limits annual assessment increases.

This guide uses verified official data to calculate exactly what you save, how the Florida homestead exemption works, and what to expect in your first year in Florida before the SOH cap kicks in. Use our Property Tax Calculator by State to compare your specific situation.

The New Jersey Property Tax Burden

New Jersey's average residential property tax bill reached $9,898 in tax year 2024, according to the New Jersey Division of Taxation's official MOD IV Average Residential Tax Report published December 3, 2024. This is the highest statewide average in the United States.

The burden is not uniform across the state:

• Bergen County: Average exceeds $14,000/year
• Morris, Somerset Counties: Averages $11,000–$12,000+/year
• Ocean, Atlantic Counties: Averages $6,500–$6,800/year
• Salem County (lowest): Average ~$5,500/year

On top of property taxes, New Jersey charges state income tax at rates from 1.4% to 10.75% (for income over $1 million). For a household earning $150,000, state income tax is approximately $7,000–$9,000/year. A typical middle-income NJ homeowner pays $17,000–$22,000/year in combined property tax and state income tax.

See the full guide: New Jersey Property Tax 2026: Rates, Relief Programs & Calculator

How Florida Property Tax Works

Florida has no state property tax. Rates are set by local taxing authorities — counties, school districts, municipalities, and special districts. The typical combined effective rate in Florida is below the national average, but what truly differentiates Florida for long-term homeowners are two specific mechanisms:

1. The $50,000 Homestead Exemption

Florida's homestead exemption has two parts (per the Florida Department of Revenue):

• First $25,000: Applies to all property taxes including school district taxes — available to all homestead properties
• Additional $25,000: Applies to non-school taxes on assessed values between $50,000 and $75,000 — reduces county, municipal, and special district taxes but not school board taxes

To claim it: apply to your county property appraiser by March 1 of the tax year. You must own and occupy the home as your primary, permanent residence on January 1.

2. The Save Our Homes 3% Cap

Once you've had the homestead exemption for at least one year, the Save Our Homes (SOH) amendment limits annual increases in your home's assessed value to 3% or CPI, whichever is less. This means even if your home's market value rises 12%, your assessed value only grows by up to 3%.

Over time, this creates a growing gap between market value and assessed value — and thus growing savings compared to what you'd pay at market value. After 10 years, a long-term Florida homeowner often pays taxes on an assessed value 20–30% below market value.

The Savings: NJ vs Florida Side by Side

The following comparison uses verified official data: NJ state average from the NJ Division of Taxation MOD IV 2024 Report; Florida figures from the Florida Department of Revenue.

These are estimates. Your actual Florida bill depends on your county's total millage rate (typically 15–25 mills combined). Use the Property Tax Calculator by State for estimates at your home value.

What to Expect in Your First Year in Florida

Moving to Florida does not immediately deliver the lowest possible property tax. Here's what happens year by year:

Year 0 (purchase year): Your home is assessed at market value (what you paid). You have not yet applied for the homestead exemption. Your first partial-year bill reflects this full market-value assessment.

Year 1 (first full year with homestead exemption): If you apply by March 1 and occupied the home on January 1, you receive the $50,000 homestead exemption for the full year. Your assessed value still reflects purchase price.

Years 2+ (SOH cap activates): Starting the year after you first receive the homestead exemption, the Save Our Homes cap limits any increase in your assessed value to 3% or CPI. If Florida home values rise significantly, your assessment grows slowly while the market moves faster — building your "SOH benefit" (the difference between assessed and market value).

After 10 years: In a market where home values grew 6%/year, your market value would be ~79% higher than purchase price, but your SOH-capped assessed value would only be ~34% higher. This translates to taxes that are substantially lower than what a new buyer pays for the identical house.

Portability: When you eventually move to another Florida home, you can transfer your accumulated SOH benefit — the dollar difference between your market value and assessed value — to offset the new home's assessed value. This prevents long-term Florida owners from being "stuck" in their current home just to preserve low taxes.

Additional Florida Tax Advantages for Retirees

For retirees moving from New Jersey, the financial picture improves beyond just property taxes:

No Florida state income tax: Florida has no individual income tax. This means pension income, IRA distributions, 401(k) withdrawals, Social Security, and investment income are all free from state taxation in Florida. New Jersey taxes most of this income — though NJ does offer a partial pension/retirement income exclusion for lower incomes.

Florida senior exemptions (county option): Counties and municipalities may grant an additional property tax exemption up to the full assessed value for low-income homeowners aged 65+. Availability and income limits vary by county — contact your county property appraiser after you establish residency.

NJ relief programs for comparison: If staying in New Jersey, seniors can benefit from ANCHOR ($1,750 maximum benefit for seniors earning under $150,000), Stay NJ (50% of property taxes up to $6,500 starting tax year 2026 for homeowners 65+ with income under $500,000), and the Senior Freeze program. These are significant but do not close the full gap to Florida's structural advantages.

SALT deduction: Florida homeowners can deduct property taxes + Florida sales taxes on their federal return (up to the $40,000 SALT cap per IRS Topic 503). Since Florida has no state income tax, the SALT election may include sales taxes instead, partially offsetting federal tax liability. See the SALT Deduction Guide.