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New Jersey property tax
New Jersey has the highest statewide effective property tax rate in Tax Foundation's 2026 ranking of ACS 2024 data, at 1.88%. Relief for homeowners is mostly through state benefit programs such as ANCHOR and through fixed deductions, not a large homestead exemption from assessed value.
ANCHOR and the veteran deduction
The Division of Taxation's ANCHOR page (updated July 16, 2026) calculates the homeowner benefit from line 29 of the 2025 NJ-1040:
- $1,500 if 2025 gross income was $150,000 or less.
- $1,000 if income was $150,001 to $250,000.
- Not eligible if income exceeded $250,000.
If you are 65 or older and did not claim a $50 property tax credit on the return (or are not required to file), that credit can be added to the ANCHOR payment. The Division also says the total of property-tax relief benefits cannot exceed the property taxes paid on your principal residence for the same year. Renter amounts are $450, or $700 if you were 65 or older in 2025, with a $150,000 income cap. Payments are described as beginning on a rolling basis starting September 15.
Separately, honorably discharged veterans with qualifying active-duty service, and certain surviving spouses, may receive an annual $250 property tax deduction. Eligibility is determined as of October 1 of the pretax year. Apply with your local assessor or collector on Form V.S.S. If the deduction is denied, the Division says you may appeal to the county board of taxation on Form A-1 by April 1, or by January 15 in Burlington, Gloucester and Monmouth counties.
Assessment rules
Each municipality assesses real property as a percentage of true value. That ratio (the director's ratio) varies by town, so two homes with the same market value can have different assessed values. Periodic revaluations or reassessments reset assessments toward market value. New Jersey does not use a single statewide homestead exemption from assessed value comparable to Texas's $140,000 school exemption.
Payment calendar
Most New Jersey municipalities collect property taxes quarterly, commonly on February 1, May 1, August 1 and November 1 (N.J.S.A. 54:4-66). Confirm the schedule and any grace period with your municipal tax collector.
Appeals
To challenge an assessment, file a petition of appeal (Form A-1) with your county board of taxation. The traditional deadlines are January 15, or April 1 in a year the municipality implemented a district-wide revaluation or complete reassessment. Confirm the date printed on your assessment notice and with the county board, because local revaluation years change the deadline.
Effective rates by county
ACS 2024 5-year median taxes paid divided by median home value (Tax Foundation 2026 compilation). County rates here are still averages of many municipal rates.
| County | Median home value | Median taxes paid | Effective rate |
|---|---|---|---|
| Atlantic | $295,000 | $6,776 | 2.30% |
| Bergen | $623,000 | $10,000 | 1.61% |
| Burlington | $354,000 | $7,983 | 2.26% |
| Camden | $287,100 | $8,134 | 2.83% |
| Cape May | $434,600 | $5,306 | 1.22% |
| Cumberland | $221,400 | $5,052 | 2.28% |
| Essex | $524,100 | $10,000 | 1.91% |
| Gloucester | $310,400 | $8,055 | 2.60% |
| Hudson | $539,700 | $9,555 | 1.77% |
| Hunterdon | $517,200 | $10,000 | 1.93% |
| Mercer | $377,700 | $8,909 | 2.36% |
| Middlesex | $462,900 | $9,712 | 2.10% |
| Monmouth | $606,100 | $10,000 | 1.65% |
| Morris | $582,500 | $10,000 | 1.72% |
| Ocean | $398,400 | $6,562 | 1.65% |
| Passaic | $459,500 | $10,000 | 2.18% |
| Salem | $239,500 | $7,018 | 2.93% |
| Somerset | $552,100 | $10,000 | 1.81% |
| Sussex | $369,400 | $8,568 | 2.32% |
| Union | $529,200 | $10,000 | 1.89% |
| Warren | $346,500 | $8,119 | 2.34% |
Sources
- New Jersey Division of Taxation: How ANCHOR Benefits Are Calculated (homeowners: $1,500 if 2025 gross income on NJ-1040 line 29 is $150,000 or less, $1,000 if $150,001 to $250,000; not eligible above $250,000; page last updated July 16, 2026)
- New Jersey Division of Taxation: $250 Veterans Property Tax Deduction
- Tax Foundation, Property Taxes by State and County, 2026 (published March 16, 2026; county median housing value, median real estate taxes paid, and statewide rankings from the US Census Bureau American Community Survey 2024 5-year estimates)
Common questions
How much is the ANCHOR benefit for homeowners?
For the program described on the Division of Taxation's July 16, 2026 page: $1,500 if 2025 gross income was $150,000 or less, and $1,000 if income was $150,001 to $250,000.
Is ANCHOR taken off my assessed value?
No. It is a benefit payment (or credit) related to the taxes you paid, subject to income rules and a cap equal to taxes paid. The $250 veteran deduction is a deduction from the tax bill.