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Navigating New Jersey's 2025 Tax Landscape: Essential Insights

Edward Goldstein, CFP |
Categories
Financial Planning

As we navigate the complex landscape of New Jersey taxes in 2025, it is crucial to understand the unique aspects of our state’s tax structure. This guide aims to provide an overview of key tax considerations for New Jersey residents, focusing on property taxes, income taxes, and various tax relief programs.

Disclaimer: This article is for informational purposes only and does not constitute personal tax advice. Please consult with a qualified tax professional for guidance on your specific situation. 

Understanding New Jersey’s Tax Structure in 2025

New Jersey’s tax framework rests on three essential pillars that directly impact your financial planning decisions:

1. Property Tax Rates

New Jersey homeowners continue to face one of the nation’s highest property tax burdens. According to WalletHub, New Jersey was ranked as having the highest property taxes in the US in 2024. As of 2025, the average property tax rate in New Jersey stands at 2.23% of the assessed value, but as you see below can vary greatly. 

It is important to note that property values in New Jersey have significantly increased, with an 11.13% jump from 2024 to 2025. Local governments set these rates annually based on community needs; factoring in costs for schools, libraries, municipal services, open spaces, and county operations.

In some municipalities, assessed values will not align with current market values, and some find it more efficient to adjust the effective tax rate rather than update assessed values at the same rate. For perspective, a home assessed at $300,000 at 3% generates about $9,000 in property taxes. 

Property Taxes in Marlton, NJ and Surrounding Counties

Focusing on Marlton, NJ, where our office is located and the surrounding counties, we see some variation in property tax rates:

  • Burlington County: Average effective tax rate of 2.56%
  • Gloucester County: Average effective tax rate of 2.95%
  • Camden County: Average effective tax rate of 3.27%

It is important to understand that tax rates can vary significantly by county municipality.  For example:

As of 2024, the property tax rates for some South Jersey towns are as follows:

  • Marlton, NJ: median property tax rate 3.07%
  • Moorestown, NJ: median property tax rate 2.68%
  • Voorhees, NJ: median property tax rate 3.6%
  • Egg Harbor City, NJ: median property tax rate 1.28%; one of the lowest rates
  • Palmyra, NJ: median property tax rate 4.13%; one of the higher rates in the county

For comparison:

  • Marlton's median home value: $261,600
  • Marlton's typical annual property tax bill: $8,025
  • Moorestown median home value: $372,200
  • Moorestown’s typical annual property tax bill: $10,128
  • Voorhees' median home value: $314,614
  • Voorhees’ typical annual property tax bill: $11,313

2025 property tax rates for towns were not available at the time of writing.

Property tax rates can vary significantly at the county level due to differences in municipal services, school districts, and other local factors. It is important to note that property-specific improvements, such as adding a pool or building an extension, can increase your property's assessed value and, consequently, your tax burden. We strongly advise consulting your local tax assessor's office for the most accurate and up-to-date information on tax rates in your area. Additionally, comparing your property's assessment with similar homes in your neighborhood can be beneficial; if you notice significant disparities, you may have grounds to file an appeal.

2. State Income Tax Brackets

New Jersey employs a tiered tax structure for income tax. Here is a breakdown of the 2025 tax brackets for joint filers, including the maximum blended average for each bracket:

Income Range           Tax Rate          Maximum Blended Average
Up to $20,000                 1.40%              1.40%
$20,001 - $50,000          1.75%               1.62%
$50,001 - $70,000          2.45%              1.85%
$70,001 - $80,000          3.50%             2.03%
$80,001 - $150,000        5.525%            3.60%
$150,001 - $500,000      6.37%              5.52%
$500,001 - $1,000,000  8.97%             7.25%
Over $1,000,000            10.75%          Varies based on total income

Note: As of the time of writing, the standard deductions for 2025 have not been released. Please check with the New Jersey Division of Taxation for the most current information.

3. Sales Tax Overview

New Jersey maintains a consistent sales tax rate of 6.625% statewide. This simplifies shopping across the state, as there are no additional local sales taxes to consider.

For business owners: You must collect sales tax if you have a physical presence in New Jersey, your business exceeds $100,000 in revenue, or your business has more than two hundred yearly transactions. This requirement covers most tangible goods, digital products, and select services. We recommend speaking with your Accountant to determine if your business is required to do so.

Key Tax Relief Programs for New Jersey Residents

Property Tax Deduction Program

Qualified property owners in New Jersey may be eligible for deductions up to $15,000 on their taxable income. For renters, 18% of yearly rent can count toward property tax deductions.

Note: The specific values for 2025 have not been released at the time of writing. Please check with the New Jersey Division of Taxation for the most current information.  https://www.nj.gov/treasury/taxation/njit35.shtml

A “qualified property owner” typically refers to a New Jersey resident who owns and occupies a home as their principal residence. However, eligibility criteria may apply, and these can change from year to year. For homeowners filing jointly, your gross income must be $20,000 or more; $10,000 or more if filing singly.  

PAS-1 Senior Combined Applications

As of February 2025, a new single combined application (PAS-1) has been introduced for seniors aged 65 and older or those receiving Social Security Disability benefits to apply for multiple property tax relief programs, including ANCHOR, Senior Freeze, and Stay NJ.

The deadline to file for the 2024 tax year property tax relief application is October 31, 2025.

ANCHOR Program (Previously known as Homestead Benefit Program)

The ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program provides significant property tax relief. While the specific 2025 values have not been released as of this writing, the program typically offers varying benefits based on age and income.

For reference, in previous years:

  • Senior homeowners (65+) with incomes under $150,000 received $1,750; those with incomes between $150,000 and $250,000 were eligible for $1,250.
  • Senior renters with incomes up to $150,000 received $700.

For the 2024 tax year, residents under 65 and not collecting Social Security disability benefits may have their ANCHOR applications automatically filed when online filing becomes available in the Summer of 2025.

Please note that these figures are from previous years. The 2025 values have not been released at the time of writing. Check the official New Jersey Division of Taxation website for the most up-to-date information.  https://www.nj.gov/treasury/taxation/individuals/freqqitia.shtml

Senior Freeze Program

The Senior Freeze program helps stabilize property taxes for eligible seniors based on residency, income, and age. While the 2025 income limits have not been released as of this writing, 2024 income limits were $168,268 or less and covered both traditional and mobile homes.  

Please check the New Jersey Division of Taxation website for the most current information on income limits and eligibility for 2025.

Stay NJ

The Stay NJ program offers substantial relief to senior homeowners. Those 65 and older may be eligible to receive 50% of their property tax bills reimbursed, with a cap of $6,500 for households earning under $500,000 yearly. If funding is still available later this year, payments will be issued in early 2026.

Note: These figures are based on the most recent available information. The specific values for 2025 may differ and have not been released at the time of writing.

Work from Home Tax Considerations

As of 2025, specific work-from-home tax benefits available from 2020 to 2023 have expired. However, the remote work landscape continues to evolve, and new benefits or considerations may arise. 

We recommend staying informed about any new legislation or tax policies related to remote work.  https://www.nj.gov/treasury/taxation/relief.shtml

Energy Efficiency Incentives

New Jersey continues to offer various incentives for energy-efficient home improvements in 2025. While specific numbers for 2025 are not available at the time of writing, these typically include credits for:

  • Solar panel installations
  • Energy-efficient heating and cooling systems
  • Insulation upgrades
  • Electric vehicle purchases

For electric vehicles, it’s crucial to research which specific models qualify for federal and state incentives, as these can change annually. Additionally, we recommend checking with local energy providers like PSE&G for any available benefits, promotions, or credits they may offer for energy-efficient upgrades.

Conclusion

Understanding New Jersey’s tax landscape is crucial for effective financial planning. While we’ve provided an overview of key tax considerations for 2025, it’s important to remember that tax laws and programs can change. We always recommend consulting a qualified tax professional for personalized advice tailored to your situation.

At Financial Life Planning, LLC, we are committed to helping you navigate these complex financial waters. While we do not provide specific tax advice, our team can help you understand how these considerations fit into your broader financial picture and investment strategy.

Remember, staying informed and planning are key to optimizing your financial health in New Jersey’s unique tax environment.

Edward C. Goldstein, CFP®, MBA, President
CERTIFIED FINANCIAL PLANNER ™ Practitioner 
Financial Life Planning, LLC
10,000 Lincoln Dr. East, Suite 201
Marlton, NJ  08053
Phone: 856-988-5480
Fax: 908-292-1040