New Jersey homeowners just hit a new financial milestone—but not the kind worth celebrating. The average property-tax bill in the state soared to a record-breaking $10,095 in 2024, crossing the $10,000 threshold for the first time in history, according to newly released data from the state’s Department of Community Affairs.
A nearly $300 year-over-year increase, representing a 3% hike, pushed the average bill into territory that has major implications for taxpayers. Since 2017, when President Donald Trump capped the federal deduction for state and local taxes (SALT) at $10,000, New Jerseyans have felt the squeeze. Now, as a Republican-controlled Congress debates Trump’s proposed federal budget—one that includes deep tax and spending cuts—the future of the SALT deduction remains a hot-button issue in Washington.
Trump has hinted at reversing course on SALT, promising in a campaign social media post that he would restore the unlimited deduction and “lower your taxes, and so much more.” For New Jersey residents, the latest property-tax surge is a stark reminder of how much is at stake.
In 2024, more than $34.5 billion was raised through local property taxes to fund school districts, municipal governments, and county services. Over $18 billion went directly to schools, while $10.3 billion supported municipalities and $6.2 billion was allocated to county governments.
In Lakewood, the average property tax bill was $8,448; in Jackson it was $8,501; in Manchester the average was $4,963; in Howell it was $9,282; and in Toms River the average property tax bill was $7,896.
With property taxes continuing to rise, Gov. Phil Murphy has ramped up state-funded property-tax relief programs, budgeting over $3 billion to help homeowners manage costs. His proposed $58 billion budget for the next fiscal year would push that figure even higher with the launch of Stay NJ, a program designed to provide additional tax relief to seniors starting in 2026.
However, Murphy’s Anchor program, which currently delivers property-tax rebates of $450 to $1,750 to homeowners and renters based on income, age, and residency, is expected to remain unchanged—meaning the latest tax hikes could outpace relief efforts for many residents.
New Jersey’s property-tax crisis is nothing new. Former Gov. Chris Christie, a Republican, attempted to rein it in with a 2010 law capping annual property-tax hikes at 2%—a measure designed to slow the relentless rise in bills.
However, exceptions to that cap have allowed increases to exceed 2%, particularly for debt payments, pension obligations, and emergency costs. Last year, Murphy signed a law allowing certain school districts losing state funding – including Jackson – to bypass the cap (up to 10%) without voter approval, opening the door for even higher tax bills.