New Jersey – New Jersey homeowners paid an average property tax bill of more than $10,000 for the first time in 2024, but according to a new analysis by New Jersey Uncovered, that statewide average tells only part of the story.
The video argues that while wealthy communities such as Alpine and Saddle River often have effective property tax rates below one percent, many working-class municipalities face rates four to six times higher because they lack the commercial tax base needed to spread local government costs.
“Everybody just kind of nodded. Like 10 grand a year for the privilege of living in a house you already own was a completely normal thing to accept,” the narrator says. “The richest towns in the state, such as Alpine, generally have effective property tax rates of less than 1%, while many working and middle-class towns have rates four to six times higher.”
Orange tops the list
According to New Jersey Uncovered, the municipality facing the heaviest burden relative to income is Orange in Essex County.
The analysis says homeowners pay an average property tax bill of about $12,400 while the city’s median household income is approximately $53,000, meaning nearly one-quarter of a typical household’s income goes toward property taxes.
Orange was once a thriving manufacturing center, the video notes, but after industry declined, the housing remained while the tax burden continued to grow.
“The people paying the highest share of their income in property tax in all of New Jersey are not the rich. It’s people in places such as Orange,” the narrator says.
Small communities with limited tax bases
The analysis next points to Prospect Park, describing the Passaic County borough as just a half-square-mile community with little room for commercial development.
According to the video, homeowners pay roughly $12,000 annually in property taxes on median household incomes of about $70,000.
“So, it all lands on homeowners who are working families, not large corporations,” the narrator says, arguing that communities without office parks, shopping centers or industrial tax ratables place a greater burden on residential property owners.
Essex County communities dominate the rankings
New Jersey Uncovered also highlights Irvington as another municipality where property taxes consume a significant share of household income.
The video estimates an average annual property tax bill of about $9,400 against a median household income of roughly $54,000, or approximately 17 percent of annual earnings.
“This is another city with a story similar to that of Orange,” the narrator says, describing Irvington as a former industrial community now supporting tax rates established during a different economic era.
Middle-class suburbs also feel the squeeze
The analysis argues the problem extends well beyond struggling cities.
In Bergenfield, homeowners reportedly pay property tax bills approaching $12,000 on household incomes around $110,000, while Clifton residents pay nearly $10,000 on median incomes of approximately $98,000.
The video also notes Clifton recently completed a municipal revaluation, warning that updated property assessments can significantly increase tax bills even for homeowners who have made no improvements to their homes.
“You didn’t renovate. You didn’t add a wing. You just owned a normal house in a normal city while the market went nuts around you,” the narrator says.
Affluent towns aren’t immune
While much of the video focuses on working-class municipalities, New Jersey Uncovered also examines affluent commuter communities where high incomes are accompanied by enormous annual tax bills.
In Montclair, the analysis estimates annual property taxes of about $21,600 on median household incomes near $150,000.
The video similarly points to South Orange, where average property taxes approach $22,000 on household incomes around $173,000.
“But $22,000 a year in property tax is $1,800 a month, every month, forever on top of the mortgage,” the narrator says, arguing that even six-figure earners can struggle with New Jersey’s recurring property tax burden.
South Jersey communities face familiar challenges
The video also identifies Woodlynne, Salem City and Bridgeton as communities where limited commercial development and declining industrial tax bases have left homeowners paying a disproportionate share of municipal costs.
In Salem City, the narrator points to the community’s history as one of America’s oldest settlements while noting the loss of manufacturing jobs over time.
“When the jobs leave a small city, the tax base shrinks and the rate has to climb to cover the same firehouse and schools,” the narrator says. “So the fewer people left to pay, the more each one pays.”
The analysis concludes in Bridgeton, where it argues historic homes and modest household incomes have combined to create a challenging financial environment for longtime residents despite the city’s architectural heritage.
New Jersey Uncovered closes by arguing that New Jersey’s long-running outmigration is driven in large part by housing costs and property taxes, while questioning whether relief programs such as ANCHOR, Senior Freeze and Stay NJ address the underlying causes of the state’s high tax burden. The analysis encourages viewers to share how property taxes have affected their own communities.
