Property taxes are on the rise across the country, and for homeowners in New Jersey, the burden is heavier than anywhere else in the United States. According to WalletHub’s 2025 Property Tax by State rankings, New Jersey ranks 51st among all U.S. states and the District of Columbia, making it the state with the highest property tax rate in the nation.
New Jersey Homeowners Face Steep Property Taxes
The report highlights that New Jersey homeowners paid a median of $9,541 in property taxes in 2023. This figure is more than three times the national average of $2,969, as reported by the U.S. Census Bureau. The state’s effective property tax rate stands at 2.23%, which is the highest in the country.
WalletHub’s analysis took into account data from the 2023 U.S. Census Bureau, comparing the median home value in each state to factors such as median real-estate tax payments and overall property tax rates. In New Jersey, the median home price was listed at $427,600, contributing to its steep tax bills.
Why Are New Jersey’s Property Taxes So High?
One of the primary reasons behind New Jersey’s high property taxes is the way the state funds its public services, particularly education. Unlike some states that rely heavily on sales or income tax revenue, New Jersey leans significantly on property taxes to finance local government operations, including schools, emergency services, and infrastructure.
Additionally, the WalletHub report suggests a political divide in property tax rates, noting that blue states tend to have higher property taxes compared to red states. This trend is reflected in the rankings, with many Democrat-leaning states appearing in the top 10 list of highest property taxes.
States with the Highest Property Taxes in 2025
According to WalletHub, the top 10 states with the highest property taxes are:
- New Jersey
- Illinois
- Connecticut
- New Hampshire
- Vermont
- New York
- Texas
- Wisconsin
- Nebraska
- Iowa
These states impose higher-than-average property tax rates, often due to factors like school funding needs, infrastructure costs, and local government expenses.
Where Are Property Taxes the Lowest?
On the other end of the spectrum, some states offer significant relief to homeowners with much lower property taxes. The WalletHub report lists the 10 states with the lowest property taxes:
- Hawaii
- Alabama
- Nevada
- Colorado
- South Carolina
- Arizona
- Delaware
- Idaho
- Utah
- West Virginia
Hawaii, for example, has the lowest effective property tax rate in the country, and it benefits from a high percentage of state revenue coming from tourism and other industries.
What This Means for Homeowners
For prospective homebuyers and those considering relocation, property tax rates are a crucial factor in determining overall affordability. “Some states charge no property taxes at all, while others charge an arm and a leg,” said Chip Lupo, WalletHub Analyst.
“Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living, when deciding on a city.”
While high property taxes can be a drawback, they often fund essential public services, including education, infrastructure, and emergency response programs. Still, many homeowners in high-tax states like New Jersey are searching for relief through tax reform or relocation to states with friendlier property tax policies.
Conclusion
The latest WalletHub report illuminates the significant disparities in property tax rates across the country. With New Jersey leading the nation in property tax burdens, homeowners in the Garden State pay a hefty price for public services and infrastructure.
Meanwhile, states with lower tax rates continue to attract residents looking for financial relief. As property taxes remain a crucial consideration for homeownership, potential buyers and current homeowners alike must weigh these costs when making financial decisions.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
