New Jersey Property Taxes Reach Record Highs, Exceeding Legal Limits

Got story updates? Submit your updates here. ›

New Jersey homeowners faced a sharp 5% property tax increase in 2025, pushing the average bill to over $10,570, with some towns seeing hikes of 20% or more. The state collected over $36 billion in property taxes, with around 52% going to schools. Despite legal guardrails, hundreds of towns exceeded the 2% cap on property tax increases, taking advantage of exceptions for healthcare, pension costs, and lost school funding.

Why it matters

The significant property tax hikes have put a major financial strain on New Jersey residents, who are already dealing with rising costs of living, including higher utility bills and gas taxes. The issue highlights the ongoing challenges of funding public services and schools while keeping taxes affordable for homeowners.

The details

In 2025, the average property tax bill in New Jersey rose to a record high of $10,570, up from $10,095 the previous year. Around 52% of the $36 billion in total property taxes collected went to funding schools. Despite a 2% cap on property tax increases, with exceptions for healthcare, pension costs, and lost school funding, hundreds of towns exceeded this limit. In 40 towns, the average bill increased by more than 10%, and 155 towns saw hikes of over 5%. Three towns - Asbury Park, Millstone Borough, and Chesilhurst - experienced an average 20% property tax increase.

• In 2025, the average property tax bill in New Jersey rose to a record high of $10,570.
• The state collected over $36 billion in property taxes in 2025, up from $35.6 billion the previous year.

What’s next

The state legislature may need to re-evaluate the property tax cap and exceptions to ensure homeowners are not overburdened, while still providing adequate funding for public services and schools.