Summary

For buyers considering homes in the Philadelphia suburbs, property taxes are often one of the most confusing—and most consequential—factors in deciding where to live. Comparing New Jersey and Pennsylvania taxes isn’t as simple as looking at a millage rate or a percentage. Taxes are shaped by state structure, school funding models, reassessment practices, and local townships, which means the real impact shows up in your monthly payment and long-term affordability, not just the headline number.

In this guide, we’ll break down NJ property taxes vs. PA property taxes in a practical, buyer-focused way, with real-world context from popular markets like Haddonfield, Moorestown, Cherry Hill, and Medford in New Jersey, and Lower Merion, Radnor, Tredyffrin-Easttown, Chester County, and Bucks County in Pennsylvania.

Table of Contents

1. Why Property Taxes Matter More Than Buyers Expect

2. How New Jersey Property Taxes Are Structured

3. How Pennsylvania Property Taxes Are Structured

4. School Funding: The Biggest Difference

5. Reassessments and Tax Predictability

6. NJ Town Examples: What Buyers Typically See

7. PA Town Examples: What Buyers Typically See

8. Monthly Cost Comparison: NJ vs. PA

9. How Taxes Influence Buyer Demand and Home Prices

10. What This Means for Buyers Choosing Between NJ and PA

11. Final Takeaways

1. Why Property Taxes Matter More Than Buyers Expect

Buyers often focus on purchase price and interest rates, but property taxes are a permanent part of ownership. Unlike a mortgage—which eventually gets paid down—taxes continue for as long as you own the home and often rise over time.

In competitive suburban markets, taxes can:

• Affect how much home you qualify for

• Influence resale demand

• Shape buyer pools by price range

• Impact long-term affordability more than interest rate changes

This is especially true when comparing New Jersey and Pennsylvania, where the systems differ significantly.

2. How New Jersey Property Taxes Are Structured

New Jersey relies heavily on local property taxes to fund schools, municipalities, and counties. As a result, NJ consistently ranks among the highest property-tax states in the country.

Key characteristics:

• Taxes are assessed locally and recalculated regularly

• School funding is heavily property-tax based

• Tax bills are typically higher as a percentage of home value

• Predictability is lower after reassessments

In towns like Haddonfield, Moorestown, Cherry Hill, and Medford, buyers often accept higher taxes in exchange for strong schools and services.

3. How Pennsylvania Property Taxes Are Structured

Pennsylvania property taxes are generally lower on average, but they are also more complex and vary widely by county and school district.

Key characteristics:

• Taxes are split between county, township/borough, and school district

• Reassessments happen less frequently in many counties

• Tax bills may lag behind current market value

• New buyers can see tax increases after purchase due to reassessment or appeals

In areas like Lower Merion, Radnor, and Tredyffrin-Easttown, taxes can still be substantial—but they are often perceived as more predictable year to year.

4. School Funding: The Biggest Difference

The single biggest driver of the NJ vs. PA tax difference is how schools are funded.

New Jersey

• Public schools are primarily funded through property taxes

• Strong districts often correlate with higher tax bills

• Town-wide reassessments can significantly change taxes

Pennsylvania

• School districts are also funded through property taxes, but with more variation

• Some high-performing districts (Lower Merion, Radnor, Central Bucks) still carry high taxes

• Buyers sometimes see lower taxes relative to purchase price compared to NJ

This difference explains why NJ towns often have higher taxes even when home prices are similar.

5. Reassessments and Tax Predictability

Tax predictability matters for long-term planning.

New Jersey

• Reassessments occur more regularly

• Taxes tend to track market value more closely

• Buyers may face noticeable increases over time

Pennsylvania

• Reassessments can be infrequent

• Taxes may be based on older assessments

• Buyers should always verify post-purchase tax exposure, especially in Chester and Bucks Counties

Understanding reassessment risk is critical before making a decision.

6. NJ Town Examples: What Buyers Typically See

Haddonfield

• Highly regarded schools

• Walkable downtown along Kings Highway

• Higher tax bills relative to home value

• Strong long-term resale demand

Moorestown

• Large homes and traditional neighborhoods

• One of South Jersey’s top school districts

• Taxes are often a tradeoff buyers knowingly accept

Cherry Hill & Medford

• Wider range of price points

• Taxes vary significantly by neighborhood

• Attractive for buyers seeking NJ residency with suburban amenities

7. PA Town Examples: What Buyers Typically See

Lower Merion & Radnor

• Among the highest-tax areas in PA

• Strong schools and Main Line access

• Taxes often comparable to NJ in absolute dollars, but not as a percentage

Chester County (Malvern, West Chester, Tredyffrin)

• Broader range of tax outcomes

• Strong school districts with varying millage rates

• Often viewed as a balance between cost and quality

Bucks County (Doylestown, Yardley, Newtown)

• Central Bucks and Council Rock districts drive demand

• Taxes vary by township and reassessment cycle

• Popular with NJ buyers crossing the river

8. Monthly Cost Comparison: NJ vs. PA

Buyers should always compare total monthly carrying cost, not just taxes.

Consider:

• Mortgage payment

• Property taxes

• Insurance

• Maintenance

In some cases:

• A higher NJ tax bill may still make sense if commute or school needs are better met

• A PA home with lower taxes may allow buyers to afford a higher purchase price

The right choice depends on lifestyle and long-term plans—not just numbers.

9. How Taxes Influence Buyer Demand and Home Prices

Taxes directly affect:

• Buyer pool size

• Price ceilings in certain towns

• Long-term appreciation trends

Higher-tax towns often maintain strong prices because:

• Schools are highly ranked

• Inventory is limited

• Buyers self-select into the market

Lower-tax areas may attract more price-sensitive buyers, increasing competition.

10. What This Means for Buyers Choosing Between NJ and PA

When choosing between New Jersey and Pennsylvania, buyers should ask:

• How long do I plan to own this home?

• How important are specific school districts?

• Do I value tax predictability or lower starting cost?

• How does this affect my monthly budget and future resale?

There is no universal “better” state—only a better fit for your priorities.

11. Final Takeaways

NJ and PA property taxes differ not just in amount, but in structure, predictability, and long-term impact. New Jersey generally carries higher tax burdens tied closely to market value, while Pennsylvania offers more variation depending on county, township, and school district.

For buyers in the Philadelphia suburbs, understanding these differences is essential to making a confident, informed decision—especially when comparing similar homes across state lines.

Eric Kelley, Philadelphia Suburbs Realtor & Attorney