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New Jersey collected over $36 billion in property taxes in 2025. That’s a 5% increase over the prior year, more than double the state’s own 2% cap on property tax hikes.
About 52% of the total went to fund schools.
The statewide average property tax bill hit $10,570, a jump of nearly $500 from the previous record of $10,095 set just one year earlier.
That was the first time the average crossed into five figures. Now it’s well past that mark.
Why the 2% Cap Didn’t Hold
New Jersey has had a 2% cap on property tax increases since 2010, signed into law by former Gov. Chris Christie. The cap includes exceptions for healthcare and pension costs.
But a newer exception has opened the door much wider. Municipalities that lost state school funding can now raise property taxes by up to 9.9% without voter approval.
In some cases, towns that rejected school budgets with large tax increases were overruled by the New Jersey Department of Education.
The result: 155 towns saw increases above 5%. In 40 towns, the average bill jumped more than 10%. Three towns — Asbury Park, Millstone Borough, and Chesilhurst — faced average increases of 20%.
Where the Biggest Increases Hit
Property taxes increased by $1,000 or more in 31 municipalities. The largest dollar increase was in Deal, a wealthy shore town in Monmouth County.
On the other end, just 21 towns saw their bills stay flat or decrease — even fewer than the year before.
The Broader Pressure on Homeowners
The property tax spike didn’t happen in isolation. In 2025, New Jersey homeowners also dealt with rising utility costs, a higher gas tax, and several other new state taxes.
For many residents, the cumulative effect has made it noticeably more expensive to own a home in the state.
