New Report Shows How Much More NJ Pays in Property Taxes vs. Rest of U.S.
Nationally in 2016, the average property tax bill on a single family home was $3,296.
In New Jersey, it was $8,477, reinforcing the state's reputation as being the least tax-friendly to its residents.
According to a report released Thursday by real estate database ATTOM Data Solutions, New Jersey easily takes the top spot for highest property taxes, beating out second-place New York by more than $1,400.
Relative to the average market value of single family homes in the state, New Jersey also posted the highest tax rate in the nation — 2.31 percent, the California-based company said. The rate topped 2 percent in only four other states - Illinois, New Hampshire, Texas and Vermont.
"New Jersey homeowners in 2016 paid a cumulative total of over $20 billion in property taxes just on single family homes," said ATTOM senior vice president Daren Blomquist.
That represents nearly 10 percent of the $277 billion levied on single family homes nationwide, according to the report.
The report also took a closer look at the 586 counties in the U.S. with a population of at least 100,000 and at least 10,000 single-family homes.
Nine counties posted average annual property taxes of more than $10,000, including four in New Jersey — Essex ($11,597), Bergen ($11,323), Union ($10,575) and Morris ($10,077).
The tax rate was lower than 2 percent in just two of the New Jersey counties analyzed — Monmouth and Ocean.
Blomquist said one of the goals in releasing reports like this one is to increase transparency in the real estate market. Potential homebuyers may not consider property taxes when determining whether they can afford a home.
"You look at the listing price of a home and that's what you're thinking about," he said. "If you add another $10,000 a year on top of that listing price ... that makes a big difference."