# New Jersey mortgages: property taxes, transfer fees and NJHMFA help

> New Jersey homeowners pay the highest property tax bills in the US. See the monthly cost, what income it takes, transfer fees and NJHMFA help.

URL: https://mail.mortgage-math-us.com/location/new-jersey/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median New Jersey home is valued at $496,000, and with 10% down at the 7.24% national average rate it costs about **$4,249 a month** — $781 of that is property tax, because New Jersey owners pay the highest median property tax bill of any state ($9,358 a year). Sellers, not buyers, pay the state’s realty transfer fee, and first-time buyers can get $10,000–$15,000 in forgivable down-payment help from NJHMFA, plus $7,000 more for first-generation buyers.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median property tax bill | $9,358/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US34) | 2024 ACS 1-year |
| Effective property tax rate | 1.89% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US34) | 2024 ACS 1-year |
| Median home value | $496,000 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US34) | 2024 ACS 1-year |
| Median household income | $104,294/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US34) | 2024 ACS 1-year |
| NJHMFA down-payment help, up to | $15,000 | [NJHMFA: Homebuyers](https://www.nj.gov/dca/hmfa/homebuyers-and-renters/homebuyers/) | Oct 29, 2026 |
| First-generation add-on | $7,000 | [NJHMFA First Generation Homebuyer fact sheet](https://www.nj.gov/dca/hmfa/homebuyers-and-renters/docs/SmartStartPlus_FirstGenerationHomeBuyer_Program_FactSheet.pdf) | Oct 4, 2023 |
| ANCHOR homeowner benefit, up to | $1,500 | [NJ Division of Taxation: How ANCHOR benefits are calculated](https://www.nj.gov/treasury/taxation/anchor/calculated.shtml) | Jul 16, 2026 |

## Why property tax drives the New Jersey payment

The Census Bureau puts the median New Jersey homeowner’s tax bill at $9,358 a year, the highest median property tax bill of any state; the national median is $3,211. Measured against home values, the effective rate of 1.89% is the 2nd-highest effective rate among the states and DC, above the US ratio of 0.89%.

There is no statewide property tax rate in New Jersey. Each municipality sets a general tax rate that combines the town, the county and the school district, so two similar homes a few miles apart can carry very different bills. Budget from the property’s latest tax bill, not a statewide average.

On the median-value home, property tax comes to $781 a month — about 18% of the full payment in the example below. At the national tax ratio, the same house would carry $368 a month, $413 less.

**ANCHOR** is the state’s main relief for homeowners. It pays $1,500 to homeowners with income up to $150,000 and $1,000 up to $250,000; above that, owners don’t qualify. The full benefit would offset about 16% of the median bill. Eligibility is based on an earlier year’s residency and income, so check when you first qualify. Owners 65 and older use the combined PAS-1 application, which also covers the Stay NJ credit.

## The monthly cost of a median New Jersey home

> **Worked example: $496,000 home, 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Monthly |
> |---|---:|
> | Principal and interest on $446,400 | $3,042 |
> | Property tax at 1.89% a year | $781 |
> | Homeowners insurance at the national $4.90 per $1,000 (Freddie Mac) | $203 |
> | PMI (midpoint of Freddie Mac’s range) | $223 |
> | **Total** | **$4,249** |
> 
> The insurance line uses Freddie Mac’s national figure. Shore homes in a FEMA flood zone may also need flood insurance, which is extra.

Census data show a median of $2,797 a month for New Jersey owners who already have a mortgage. It is lower because it includes owners who bought years ago at lower prices or rates. Test your own price and down payment in the [mortgage payment calculator](https://mail.mortgage-math-us.com/tools/mortgage-payment-calculator/?price=496000&down=10&tax=1.89&state=NJ).

## What a New Jersey median income buys

New Jersey has the 3rd-highest median household income among the states and DC, $104,294 a year. Keeping housing under Freddie Mac’s 30% guideline gives that household $2,607 a month — enough for about **$304,000** with 10% down at today’s average rate and New Jersey’s tax ratio. That is $192,000 less than the median home value.

Property tax is a big part of the gap. With the national tax ratio instead, the same budget would stretch to roughly $337,000, so New Jersey’s taxes alone cost this household about $33,000 of buying power. The [affordability calculator](https://mail.mortgage-math-us.com/tools/affordability-calculator/?state=NJ&income=104294) shows how far your income goes at higher debt-to-income limits.

## NJHMFA down-payment help, county by county

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) pairs its first mortgages — the First-Time Homebuyer Mortgage Program (FHA, VA or USDA, 30-year fixed) and the conventional HFA Advantage loan — with a Down Payment Assistance Program for first-time buyers, generally people who haven’t owned a home in the past 3 years.

*NJHMFA down payment assistance by county (interest-free second loan)*

| Award | Counties |
|---|---|
| $15,000 | Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union |
| $10,000 | Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren |
| Extra for first-generation buyers | $7,000 on top, in any county |

There are no monthly payments, and the loan is forgiven after 5 years if you keep the home as your main residence and don’t refinance the first mortgage. First-generation status generally means your parents don’t currently own a home, or you were in foster care in New Jersey. Income and price limits apply and vary by area.

For scale: the 3.5% minimum FHA down payment on the median home is $17,360. The top award covers about 86% of that, leaving $2,360 of the minimum down payment to cover yourself. Active members of the Police and Firemen’s Retirement System have a separate NJHMFA mortgage program. Compare these options with national ones in our [first-time buyer programs guide](https://mail.mortgage-math-us.com/first-time-buyers/programs/).

## Realty transfer fee and the Graduated Percent Fee

New Jersey’s realty transfer fee is charged to the **seller** when the deed is recorded. It is graduated: the rate per $500 rises in steps with the price, and a higher schedule applies once the price is above $350,000. On the median-value home it comes to about $4,137, or 0.83% of the price.

Above $1,000,000, a **Graduated Percent Fee** applies to the whole price, starting at 1% and reaching 3.5% on the most expensive sales. This replaced the old “mansion tax” that buyers paid; since July 10, 2025 it is legally the seller’s. On a $1,200,000 sale, the seller would owe about $11,995 in transfer fee plus $12,000 in Graduated Percent Fee.

That leaves buyers with lender charges, title insurance, recording fees and prepaid taxes and insurance. The CFPB’s rule of thumb of 2%–5% of the price works out to $9,920–$24,800 on the median home. Itemize yours with the [closing cost estimator](https://mail.mortgage-math-us.com/tools/closing-cost-calculator/?state=NJ).

## Before you bid on an older New Jersey house

Half of New Jersey’s homes were built before 1971, the 9th-oldest housing stock among the states and DC. Older houses can mean aging roofs, oil tanks, knob-and-tube wiring or lead paint, any of which can change your repair budget or what an insurer will cover. Make your offer contingent on a full inspection — see [appraisal and inspection](https://mail.mortgage-math-us.com/buying/appraisal-and-inspection/) — and price repairs before you settle on a down payment.

## Frequently asked questions

### What is the average property tax in New Jersey?

The Census Bureau’s 2024 survey puts the median New Jersey homeowner’s bill at $9,358 a year, about 1.89% of median home value — the highest median property tax bill of any state. Your bill depends on the municipality’s combined rate for town, county and school district.

### Who pays the realty transfer fee in New Jersey?

The seller. The fee is graduated by price, and on the median-value home it comes to about $4,137. Buyers pay recording fees and their own closing costs but no state transfer fee on a typical sale.

### Does New Jersey still have a mansion tax?

Not in its old form. Since July 10, 2025, sales above $1,000,000 carry a Graduated Percent Fee of 1% to 3.5% of the price, and the law places it on the seller rather than the buyer.

### How much down-payment assistance can I get in New Jersey?

NJHMFA offers $10,000 or $15,000, depending on the county, as an interest-free loan forgiven after 5 years. First-generation buyers can add $7,000. You need an NJHMFA first mortgage and must meet income and price limits.

### How much income do you need to buy a house in New Jersey?

For the median $496,000 home with 10% down at today’s average rate, keeping housing under 30% of gross income takes roughly $170,000 a year, before any other debts. The median New Jersey household earns $104,294 a year.

### What is the ANCHOR program?

New Jersey’s property tax relief benefit: $1,500 for homeowners with income up to $150,000 and $1,000 up to $250,000. Apply through the Division of Taxation.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US34) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US34) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US34) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [NJHMFA: Homebuyers](https://www.nj.gov/dca/hmfa/homebuyers-and-renters/homebuyers/) — NJHMFA Down Payment Assistance Program, up to (depends on county); NJHMFA down payment assistance is forgiven after (Oct 29, 2026)
- [NJHMFA First Generation Homebuyer fact sheet](https://www.nj.gov/dca/hmfa/homebuyers-and-renters/docs/SmartStartPlus_FirstGenerationHomeBuyer_Program_FactSheet.pdf) — NJHMFA Down Payment Assistance in the nine lower-cost counties; NJHMFA First Generation Down Payment Assistance, added to the DPA award (Oct 4, 2023)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum FHA down payment; Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [NJ Division of Taxation: Property Sale Realty Transfer Fee](https://www.nj.gov/treasury/taxation/realty.shtml) — New Jersey Graduated Percent Fee, lowest bracket (share of the whole price, paid by the seller); New Jersey Graduated Percent Fee applies when the price is above; New Jersey Graduated Percent Fee, top bracket (prices above $3.5 million) (Sep 28, 2026)
- [NJ Division of Taxation: How ANCHOR benefits are calculated](https://www.nj.gov/treasury/taxation/anchor/calculated.shtml) — ANCHOR benefit for homeowners with income up to $150,000; ANCHOR: the full homeowner benefit goes to incomes up to; ANCHOR benefit for homeowners with income above $150,000 up to $250,000 (Jul 16, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Median real estate taxes paid by homeowners; Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=040XX00US34) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [42 U.S.C. 12704(14)](https://www.law.cornell.edu/uscode/text/42/12704) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
- [NJ Division of Taxation: Realty Transfer Fee FAQs](https://www.nj.gov/treasury/taxation/lpt/rtffaqs.shtml) — New Jersey realty transfer fee: the higher rate schedule applies when the price is above (Oct 28, 2025)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=040XX00US34) — Median year homes were built (2024 ACS 1-year)
- [NJHMFA: Homebuyer programs](https://www.nj.gov/dca/hmfa/homebuyers-and-renters/homebuyers/)
- [NJ Division of Taxation: Realty Transfer Fee and Graduated Percent Fee](https://www.nj.gov/treasury/taxation/realty.shtml)
- [NJ Division of Taxation: ANCHOR program](https://www.nj.gov/treasury/taxation/anchor/index.shtml)

_General information, not financial advice._