Headline comparison
| Long Island | New Jersey | |
|---|---|---|
| Median single-family home value | ~$650,000 | ~$485,000 |
| Median annual property tax bill | $11,129 | ~$9,500 |
| Effective property tax rate | ~1.7–1.9% | ~2.2% |
| Highest county effective rate | Suffolk ~1.9% | Camden ~2.5% |
| STAR / equivalent | STAR exemption/credit | Homestead Benefit (smaller) |
Why effective rates differ
NJ’s 2.2% effective rate is highest in the U.S. by most measures. NJ has a high proportion of school funding coming from local property tax (similar to NY), plus dense municipal layering (NJ has 565 municipalities for 9 million people; LI has ~80 villages/towns for 2.8 million). More layers = more administrative overhead per dollar of property tax raised.
LI’s ~1.8% effective rate is slightly lower because LI home values are higher per square foot, which spreads the tax base more.
Net result: similar dollar bills
A typical $500,000 home pays:
- Long Island: ~$8,500-$9,500/yr (effective rate × home value)
- New Jersey: ~$11,000/yr (higher effective rate × $500k)
But LI median home values are higher, pushing median bills higher even at lower effective rates. The “winner” depends on where you are in the home-value distribution.
Frequently asked questions
Should I move to NJ to save on property taxes?
Probably not. NJ has higher effective rates AND comparable income tax. LI vs. NJ is roughly a wash on overall tax burden. Choose based on commute, schools, and lifestyle.
Where in NJ has the lowest property taxes?
South Jersey (Cape May County, Salem County) and parts of NW Jersey have lower effective rates and lower home values. But these are 1-3 hour commutes from NYC; not realistic alternatives to LI.
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Sources and citations
Last verified May 11, 2026. Tax rules change; we re-check every page each quarter.
Educational content and estimates only, not legal, tax or financial advice. Verify with your county or town receiver, an attorney or a CPA before making financial decisions.