Lowest Property Taxes in NJ (2026): Counties & Towns

In New Jersey, counties such as Cape May (Southern NJ, Coastal County), Salem (Southern NJ, Rural County), and Cumberland (Southern NJ, Agricultural Region) consistently report some of the lowest effective residential tax burdens, offering more affordable homeownership for retirees, homeowners, and property investors.

Understanding property tax variations across NJ counties and municipalities is crucial for making informed decisions about property investments, retirement-friendly living, and qualifying for NJ property tax exemptions.

This guide highlights the towns and counties with the most favorable tax environments, explains how property taxes are calculated, and provides actionable strategies to minimize your tax burden while accounting for municipal services, local amenities, and quality of life.

Key Takeaways

• Identify NJ towns and counties with the lowest residential tax burden, highlighting Northern NJ, Southern NJ, and Coastal regions.
• Learn actionable strategies to reduce your NJ property tax liability through appeals, exemptions, and long-term tax planning.
• Understand the primary factors influencing NJ property taxes, including assessed value, municipal levies, NJ property tax exemptions, and municipal services.

Note: New Jersey property tax rates are finalized annually. The comparisons in this guide reflect the most recently available 2025 assessment data, which governs most 2026 property tax bills. Rates may vary by municipality and reassessment cycles.

Which town has the lowest property taxes in NJ (2026)?

As of the 2025–2026 New Jersey tax year, towns in southern counties such as Cape May, Salem, and Cumberland continue to report some of the lowest effective property tax rates statewide, while small towns in northern NJ near NYC like Teterboro also offer surprisingly low annual bills due to unique municipal structures. The lowest-tax town can change annually based on reassessments, local budgets, and median home values.

Towns / Cities With the Lowest Property Taxes in New Jersey (2026)

The towns below represent some of the lowest property tax burdens in New Jersey for 2026, based on the latest available annual tax bills and median home values.

Notes:
- Figures reflect typical annual property tax bills in 2026.
- Smaller towns often have lower bills due to smaller populations and unique municipal structures.
- Urban areas may appear due to low median home values, even if effective tax rates are higher.
- When evaluating tax burden, consider median home value, local services, and quality of life.

NJ Counties With the Lowest Property Taxes (2026)

Southern counties like Cape May, Salem, and Cumberland consistently provide cost-effective living for homeowners. These rankings are based on effective property tax rates, median home values, and the quality of municipal services.

Key Takeaways

• Cape May County remains the lowest-tax county in NJ for 2026.
• Salem and Cumberland Counties provide cost-effective living in southern NJ.
• Atlantic and Ocean Counties offer a balance of moderate taxes and quality amenities.
• Tax decisions should consider both the effective rate and quality-of-life factors, including schools, public services, and commuting options.

Understanding NJ Property Taxes

Property taxes vary widely depending on location, property value, and local tax policies. Effective tax rates, which show the percentage of a home's market value paid annually, may differ from nominal municipal tax rates. Homeowners should consider both the tax rate and property value, since a low rate does not always result in a low annual tax bill.

Key Factors:
- Assessed value vs market value
- Municipal levies and local budgets
- County and school district contributions
- Available exemptions and rebates

How Property Taxes Are Calculated

Formula:
Assessed Value × Tax Rate = Property Tax

Example (Cape May County, Southern NJ):

• Assessed Value: $350,000
• Tax Rate: 3.2%
• Annual Property Taxes: $11,200

Payment schedules vary; most towns require quarterly payments, though some allow biannual or monthly installments. (Source: NJ League of Municipalities)

This reflects a relatively low residential tax burden, with potential eligibility for NJ property tax exemptions for seniors or veterans.

Components:

1. Assessed Value: Market-based valuation by local tax assessor.
2. Equalization Ratio: Ensures fairness if assessments differ from market value.
3. General Tax Rate: Includes municipal, school, county, and special district levies.

Why NJ Property Taxes Vary by Location

Differences arise due to:

• Local government spending
• School district budgets
• Municipal services
• Property demand and home values

High-demand areas with limited supply or high municipal spending usually have higher property taxes. Understanding these factors helps homeowners plan for retirement-friendly living or property investments.

Strategies to Minimize NJ Property Taxes

1. Property Tax Appeals: File with professional help to challenge assessments.
2. NJ Property Tax Exemptions: Seniors, veterans, and disabled residents may qualify.
3. Local Rebates and Credits: Some municipalities provide targeted relief.
4. Retirement-Friendly Towns: Choosing Southern NJ, Coastal, or Rural towns can reduce your tax burden.

Precision Accounting Intl in Clifton, NJ, provides expert guidance in tax planning, filing appeals, and identifying available exemptions. Our team helps homeowners and investors develop a long-term strategy to minimize property taxes while maintaining compliance with New Jersey tax laws.

Balancing Low Taxes with Quality of Life

When evaluating NJ counties, consider:

- School district ratings

- Public services and infrastructure

- Commute times and local amenities

How Precision Accounting Intl Helps

At Precision Accounting Intl (our office in Clifton, serving all NJ countries), we help homeowners, retirees, and investors:

• Reduce residential tax burden
• Navigate NJ property tax exemptions
• Optimize tax planning in towns with varying municipal services

We serve clients across Northern, Southern, and Coastal NJ, providing:

• Detailed tax planning and long-term strategies
• Filing and appeal support for NJ property tax exemptions
• Guidance for retirement-friendly and investment properties

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FAQ

Which NJ town has the lowest property taxes?

Some of the lowest property tax towns in New Jersey for 2026 include Walpack Township, Teterboro, Camden, and Woodbine. These towns have low assessed values and small populations, resulting in the lowest annual bills for homeowners seeking cost-efficient living.

Are low property taxes always cheaper overall?

Not always. A low effective tax rate doesn’t always mean a low annual tax bill, because higher property values can offset the rate. Homeowners should consider both the tax rate and market value when evaluating affordability.

What county in NJ has the lowest effective tax rate?

Cape May County has the lowest effective property tax rate in 2026 at around 1.06%, followed by Salem (1.57%) and Cumberland (1.62%). These counties provide affordable property taxes while still offering essential community services.

How do I check my town’s tax rate?

Check your municipal tax assessor’s website or review your property tax bill. Many towns list both effective and nominal rates, and online NJ property tax calculators can help compare rates across multiple municipalities.

Which NJ counties have the highest property taxes?

For 2026, Bergen, Essex, and Morris Counties have the highest property tax rates in New Jersey. These counties have higher property values and municipal budgets, which increase the annual tax burden despite strong local services and amenities.

How can I lower my property tax bill in NJ?

NJ homeowners can reduce their tax burden by filing a property tax appeal, claiming exemptions for seniors, veterans, or disabled residents, and using local rebates or deductions. Working with a tax professional ensures you maximize available savings.

Are property taxes higher near NYC in NJ?

Yes, towns in northern NJ near NYC, such as Bergen and Essex Counties, generally have higher property taxes due to higher property values and increased municipal budgets, even if nominal tax rates are similar to other parts of the state.

Do smaller towns always have lower taxes in NJ?

Often, smaller towns report lower annual tax bills due to lower population and fewer municipal services, but home value and local levies still affect the total cost. Always compare effective rates and median home prices before deciding.

How do assessed value and market value affect property taxes?

The assessed value is what your municipality uses for taxation, while market value is the actual home sale price. Taxes are based on assessed value multiplied by the tax rate. Differences between these values can significantly impact your annual property tax bill

What should I consider besides taxes when moving to a low-tax NJ town?

Low taxes are important, but also consider school quality, public services, infrastructure, commute times, and local amenities. A town with slightly higher taxes may offer a better overall lifestyle and long-term property value.