Yes. New Jersey's average effective property tax rate is about 1.88 percent, the highest in the United States, with an average residential bill near $9,900. Pennsylvania's effective rate is roughly 1.26 percent, and Philadelphia's is around 0.83 percent. But the honest comparison is not one number, because each state funds different things.
This is the first tax question buyers on either side of the river ask, so it deserves a full answer, not a slogan. I'm Craig Lerch, a licensed broker with eXp Realty. I have worked every side of this metro, the Pennsylvania suburbs, South Jersey, and Northern Delaware. Every figure is dated for re-checking; this post reflects what I could verify in September 2026.
The numbers, side by side
New Jersey is the most expensive state in the country by effective rate, which is taxes paid divided by home value. In the Tax Foundation's 2026 data, based on tax year 2024, its average effective rate on owner-occupied housing was about 1.88 percent, down from 1.98 percent the year before (Tax Foundation, verified September 2026). The New Jersey Division of Taxation's own count put the statewide average residential property tax bill at $9,898 for tax year 2024 and the highest in the nation (NJ Division of Taxation MOD IV report, verified September 2026).
Pennsylvania's effective rate in the same data was about 1.26 percent. Its counties assess and tax independently, so there is no statewide average bill; county and Census-based estimates put the typical homeowner bill around $2,700 to $3,000 a year, about a third of New Jersey's average. Philadelphia sits at the low end of its own state: the nominal rate is about 1.4 percent of assessed value, but assessed values run below market, so the effective rate on owner-occupied homes lands near 0.83 percent, the lowest of the five southeastern counties. The rest run higher: about 1.30 percent in Chester, 1.31 percent in Bucks, 1.35 percent in Montgomery, and near 1.84 percent in Delaware County (verified September 2026).
Why a rate is not the whole answer
The catch is that your bill is not a percentage of what you paid for the house. It is a percentage of the assessed value the local government assigns, which can sit below market and years out of date. That is part of why New Jersey looks so high: its towns assess close to market and revalue on cycles, so the millage lands on nearly the full value. Pennsylvania counties assess at their own ratios, keeping old assessments in line with sales through a state common level ratio, so the assessed value on a record rarely equals the sale price. New Castle County, Delaware, just ran its first reassessment in decades, issuing fiscal year 2026 bills in July 2025 and resetting assessments toward market value (verified September 2026).
This is why two houses at the same price can carry very different bills on opposite sides of a line, and no statewide average tells you your personal figure. Only the county record plus your CPA can do that. This is general information, not tax advice.
How the picture changes across the metro
Inside Philadelphia, property tax starts from a single city rate, and the Homestead Exemption removes $100,000 of assessed value from the bill for an owner-occupied primary residence, worth up to about $1,399 a year, but only if you file for it (phila.gov, verified September 2026). The piece people miss is the income side: the wage tax runs 3.735 percent for residents, 3.425 percent for commuters (phila.gov, verified September 2026). A low property rate does not cancel that out; both belong in the same budget line.
In the Pennsylvania suburbs, the school tax arrives as its own bill, separate from the county and municipal ones, so the annual total can look higher than the millage suggests. Delaware County's effective rate, near 1.84 percent, is the highest of the five counties, while Montgomery and Bucks run closer to 1.3 percent. The tradeoff on this side of the river: many suburban towns charge a local earned income tax of about 1 percent, capped by law at 2 percent, so a lower property bill does not mean no local income tax (Pennsylvania DCED Act 32, verified September 2026).
In New Jersey, the high bills are partly offset by ANCHOR, the state's property tax relief program. For tax year 2024, homeowners with gross income up to $150,000 received $1,750, and those between $150,001 and $250,000 received $1,250; renters up to $150,000 received $450, or $700 if age 65 or older (NJ Treasury, verified September 2026). Most eligible residents are enrolled automatically, and ANCHOR does not change the assessed bill, only the net cost out of pocket.
Delaware runs the lowest property taxes in the region: about 0.48 percent effective statewide and a typical annual bill around $1,700 to $1,950 (Tax Foundation, verified September 2026). It is not a low-tax state overall, making up the difference with higher income and gross receipts taxes on business. New Castle County, the Delaware side of the metro, sits at the high end of its own state, near 0.6 to 0.7 percent effective.
The checklist: compare the two sides fairly
Pull the same numbers for each shortlisted house, on the same day, so the comparison is fair:
- The assessed value on the county record, not the list price.
- The millage, or the total of the county, municipal, and school rates that apply to that parcel.
- The effective rate you compute yourself: annual bill divided by the market value you would pay.
- The relief you qualify for: the Philadelphia Homestead Exemption, New Jersey's ANCHOR, or a senior rebate in your state.
- Local income taxes in the same place: Philadelphia's wage tax or a suburban earned income tax.
- A CPA check of the total against your income and purchase price before you compare states.
What surprises someone from New York or North Jersey
If you come from North Jersey, the surprise runs the other way: a comparable home across the river in Pennsylvania can carry a property bill a third to a half the size. The second surprise is on the income side. A New Jersey resident who works in Philadelphia pays the city's non-resident wage tax of 3.425 percent on earned income, and New Jersey generally lets you credit that against its own state tax, so what is actually new depends on your income. The PA-NJ reciprocity agreement covers state income tax only, not the city's wage tax, and Delaware residents generally get no such credit (verified September 2026). Whether the move saves money depends on income versus house price, the reason the checklist above exists.
What most people get wrong
- The rate on a website is what you will pay. State rates are averages; your bill is assessed value times millage.
- Moving to Pennsylvania ends property-tax surprises. The school tax is a separate bill with its own discount and penalty dates, and Delaware County's rate approaches New Jersey territory.
- A New Jersey revaluation can reset your bill to market overnight, while a Pennsylvania assessment may sit below the sale price for years.
- A low property tax alone does not make a state cheap. Delaware pairs its low bill with higher income and business taxes.
The local detail national listicles miss
The thing a national listicle on low property taxes will not tell you: in Philadelphia, the exemption that makes the low rate real is something you have to file for. The Homestead Exemption is $100,000 of assessed value for 2026, increased from $80,000, and nothing applies it automatically. New owners who assume it is automatic often pay a full year at the higher rate first. When you close, set a calendar reminder to file by October 1 for that year's bill (phila.gov, verified September 2026).
Your concrete next step
Take the shortlist you will actually tour. For each address, pull the assessed value and millage from the county record, subtract the relief you qualify for, add any local income tax, and bring the annual figure to a CPA before comparing one side of the river to the other. That total, not a statewide average, belongs in your budget. Book a 20-minute call with no follow-up and I will run that comparison across your two current shortlist addresses, so you see the whole tax ledger before you bid.