California vs New Jersey
California
Property‑Tax Comparison: California vs. New Jersey
Both California and New Jersey have high home values, but their property‑tax burdens differ markedly. Using the latest five‑year estimates from the U.S. Census Bureau’s 2023 American Community Survey (ACS), the two states can be compared on effective tax rates, median home values, median annual taxes, and household income.
Side‑by‑side metrics
| Metric | California | New Jersey |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 2.23 % |
| Median home value | $695,400 | $427,600 |
| Median annual property tax | $4,926 | $9,541 |
| Property tax on a $250 k home | $1,771 | $5,578 |
| Property tax on a $500 k home | $3,542 | $11,157 |
| Median household income | $96,334 | $101,050 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which state has the lower tax burden?
- Winner (lower effective tax rate): California – its rate of 0.71 % is 1.52 percentage points lower than New Jersey’s 2.23 %.
- Relative difference: The California rate is about 68 % lower than the New Jersey rate (1.52 % ÷ 2.23 % ≈ 0.682).
- Annual tax difference on a $250 k home: $5,578 (NJ) – $1,771 (CA) = $3,807.
- Annual tax difference on a $500 k home: $11,157 (NJ) – $3,542 (CA) = $7,615.
Because the effective tax rate directly determines the amount owed on any given property value, California’s lower rate translates into substantially smaller annual property‑tax payments for comparable home prices.
Who benefits most from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current homeowners | Understanding the ongoing tax expense helps in budgeting and evaluating the cost of staying versus selling. |
| Prospective homebuyers | Lower property‑tax rates can reduce the total cost of home ownership, especially for buyers of mid‑range homes ($250‑$500 k). |
| Retirees and fixed‑income households | Property taxes are a fixed expense; a lower rate (as in California) eases cash‑flow pressures, though other cost‑of‑living factors must also be considered. |
| Real‑estate investors | Effective tax rate influences after‑tax return calculations; California’s lower rate may improve net yields on comparable properties. |
| Policymakers and analysts | The contrast highlights the impact of state tax structures on household finances and can inform fiscal policy discussions. |
Summary
Based on the most recent ACS estimates, California’s effective property‑tax rate of 0.71 % is considerably lower than New Jersey’s 2.23 %. This difference results in annual tax savings of $3,807 on a $250 k home and $7,615 on a $500 k home. While California also has a higher median home value, the lower tax rate reduces the overall property‑tax burden for owners of similarly valued homes.
For readers seeking more detailed information on each state’s tax rules, see the dedicated pages on California property tax and New Jersey property tax.
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Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.