Compare taxes and see how much you save moving from New Jersey to New York
New Jersey has the highest average property tax rate in the United States at 2.23% — well above New York's 1.54%. On a $600,000 home, New Jersey homeowners pay approximately $4,140 more per year than New York counterparts. However, New Jersey's income tax peaks at 10.75% (on income above $1M) versus New York's 10.9% state rate — plus NYC adds up to 3.876% for city residents. For high earners living in New York City, moving to New Jersey can actually reduce total taxes despite higher property bills. This is the classic NJ-NY commuter trade-off — pay more in property, save on income taxes if you avoid NYC.
Avg Effective Rate
Highest property tax rate in the US; average annual bill over $9,000
Avg Effective Rate
High but below NJ; NYC residents also face city income tax; upstate rates vary widely
At $600,000 home income:
New York saves on property tax
| Income | NJ Tax | NY Tax | Savings | 10-Year |
|---|---|---|---|---|
| $400,000 home | $8,920 | $6,160 | $2,760 | $27,600 |
| $600,000 home | $13,380 | $9,240 | $4,140 | $41,400 |
| $800,000 home | $17,840 | $12,320 | $5,520 | $55,200 |
| $1,000,000 home | $22,300 | $15,400 | $6,900 | $69,000 |
| $1,500,000 home | $33,450 | $23,100 | $10,350 | $103,500 |
| $2,000,000 home | $44,600 | $30,800 | $13,800 | $138,000 |
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Moving between New Jersey and New York? NYC city tax domicile rules, NJ commuter tax treatment, partial-year residency filings, and establishing domicile in the correct state are all complex. Get matched with a CPA who specialises in NY/NJ state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →It depends on where in New York. For NYC residents: New York City's combined state + city income tax (up to 14.776% combined at top incomes) significantly exceeds New Jersey's rates. A high earner in Manhattan pays substantially more in income taxes than the same earner in suburban NJ — even accounting for NJ's higher property taxes. For upstate New York residents (outside NYC): New York and New Jersey income tax rates are broadly similar, but NJ's property tax is substantially higher. Most financial analyses conclude that for high-income NYC area earners, New Jersey offers better overall value.
New Jersey's high property taxes reflect its funding structure: local governments and school districts rely heavily on property tax revenue. Factors include: one of the highest education spending levels per pupil in the US; a fragmented municipal system (over 560 municipalities); limited state aid relative to local needs; high median home values that translate headline rates into large dollar bills; and political resistance to state income tax increases (NJ's income tax is relatively low for most earners). The result is a property tax burden that exceeds every other US state on average.
New Jersey's ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program provides property tax relief: homeowners earning up to $150,000 receive $1,500; homeowners earning $150,001–$250,000 receive $1,000; renters receive $450 (income limits apply). These rebates directly offset NJ's high property tax bills. A homeowner paying $14,000/year in NJ property tax who qualifies for the $1,500 ANCHOR benefit effectively pays $12,500 net — still more than New York for equivalent homes, but the gap narrows.
Both states offer senior property tax relief. New Jersey: the Senior Freeze (Property Tax Reimbursement) reimburses eligible seniors (65+, income below ~$150,000) for the increase in property taxes from their base year — protecting against rate increases. Additionally, NJ's Homestead Benefit reduces assessed value. New York: the Enhanced STAR exemption provides an additional $70,700 deduction for seniors 65+ with income below $98,700. Given NJ's much higher base rates, NY still typically costs less in absolute dollar property tax — but NJ's income tax is lower for retirement income in some brackets.