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
$9,358/yr
Median property tax bill
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
1.89%
Effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
$104,294/yr
Median household income
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
$1,500
ANCHOR homeowner benefit, up to
NJ Division of Taxation: How ANCHOR benefits are calculated · 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
$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.
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 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.
| 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.
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.
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 — 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 — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median household income (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- NJHMFA: 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 — 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 — 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 — 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 — 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 — 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 — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- 42 U.S.C. 12704(14) — 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 — 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 — Median year homes were built (2024 ACS 1-year)
- NJ Division of Taxation: ANCHOR program
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.