New Jersey vs Puerto Rico
Property‑Tax Comparison: New Jersey vs. Puerto Rico
Both New Jersey and Puerto Rico levy property taxes that fund local services such as schools, police, and infrastructure. The two jurisdictions differ markedly in tax rates, home values, and median household incomes. The figures below are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Side‑by‑Side Metrics
| Metric | New Jersey | Puerto Rico |
|---|---|---|
| Effective property‑tax rate | 2.23 % | 0.50 % |
| Median home value | $427,600 | $124,600 |
| Median annual property tax | $9,541 | $627 |
| Property tax on a $250,000 home* | $5,578 | $1,258 |
| Property tax on a $500,000 home* | $11,157 | $2,516 |
| Median household income | $101,050 | $25,096 |
*Taxes are calculated by applying the effective tax rate to the stated home price.
Who “Wins” on Property Tax?
Puerto Rico has the lower effective property‑tax rate. The rate difference is 1.73 percentage points, which represents a 77.45 % lower rate than New Jersey’s. Consequently, the annual tax on a $250,000 home is $4,320 less in Puerto Rico, and the tax on a $500,000 home is $8,641 less.
- Why Puerto Rico wins: The effective rate of 0.50 % is less than one‑quarter of New Jersey’s 2.23 %. When the same property values are used, the resulting tax bills are substantially lower.
Which Audience Might Find This Comparison Most Relevant?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the tax burden associated with buying a home in each jurisdiction helps with budgeting and long‑term cost analysis. |
| Retirees | Property‑tax levels affect fixed‑income budgeting; a lower tax rate may make Puerto Rico more attractive for retirees seeking lower ongoing expenses. |
| Real‑estate investors | Tax differentials influence cash‑flow projections and return‑on‑investment calculations. |
| Policy analysts & researchers | The data provide a concrete illustration of how property‑tax structures vary across U.S. jurisdictions. |
Data Sources
- Effective property‑tax rates, median home values, and median household incomes are taken from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
- The specific property‑tax amounts for $250 k and $500 k homes are derived by applying the reported effective rates to those home values.
For more detailed information on each jurisdiction’s tax code, see the internal pages: New Jersey property tax and Puerto Rico property tax.
All figures are presented as reported in the ACS 2023 5‑year dataset and are rounded to the nearest dollar where appropriate.
Explore More Comparisons
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.