Summary

One of the most common questions buyers ask when choosing between Pennsylvania and New Jersey is simple: “Which side has lower property taxes?” The real answer is more nuanced. While New Jersey is widely known for higher property taxes, Pennsylvania’s system introduces complexity through school district boundaries, reassessments, and township-level variation.

For buyers comparing the Main Line, Chester County, or Bucks County with Camden County suburbs like Haddonfield, Moorestown, Cherry Hill, and Medford, understanding how property taxes actually work—and how they affect monthly costs and long-term ownership—is essential. This guide offers a practical, buyer-focused comparisondesigned to help you make a smarter decision in 2026.

Table of Contents

1. Why Property Taxes Matter More Than Ever

2. How Property Taxes Work in Pennsylvania

3. How Property Taxes Work in New Jersey

4. Side-by-Side: NJ vs. PA Property Tax Structure

5. Real-World Comparisons by Market

6. How Taxes Affect Buying Power and Monthly Cost

7. Common Buyer Misconceptions

8. Strategic Advice for Buyers in 2026

9. Final Takeaways

1. Why Property Taxes Matter More Than Ever

Property taxes directly affect:

• Monthly mortgage payments (via escrow)

• Long-term affordability

• Resale appeal to future buyers

In a higher interest rate environment, taxes can be the difference between a comfortable payment and financial strain. Two homes with the same purchase price can have very different monthly costs depending on which side of the river you choose.

2. How Property Taxes Work in Pennsylvania

Pennsylvania property taxes are driven by three separate authorities:

1. The municipality (township or borough)

2. The school district

3. The county

Key characteristics of PA property taxes:

• Assessed value ≠ market value: PA assessments are often outdated and adjusted inconsistently by county.

• School districts are the biggest driver: In places like Lower Merion, Radnor, Tredyffrin-Easttown, Great Valley, Central Bucks, and Council Rock, school taxes dominate the bill.

• Township matters: Two homes with identical prices can have different taxes depending on whether they sit in a borough vs township.

Local examples:

• On the Main Line, buyers often see higher taxes in Lower Merion Township due to school funding, but that cost is offset by walkability (e.g., Ardmore’s Suburban Square) and transit access.

• In Chester County, areas feeding T/E or Great Valley may carry higher school taxes, but buyers accept them for long-term resale confidence.

• In Bucks County, Central Bucks and Council Rock districts often produce higher bills than neighboring districts—but also stronger buyer demand.

Takeaway: In PA, taxes are less predictable without property-specific research.

3. How Property Taxes Work in New Jersey

New Jersey property taxes are often higher—but also more transparent and predictable.

Key characteristics of NJ property taxes:

• Market-based assessments: Homes are assessed closer to current market value.

• Town-based school districts: In many NJ suburbs, the town and school district align cleanly, simplifying comparisons.

• Higher baseline taxes: NJ consistently ranks among the highest-taxed states for property owners.

Local examples:

• Haddonfield combines higher taxes with walkable charm along Kings Highway, PATCO access, and strong school reputation.

• Moorestown offers strong schools and larger lots, but taxes can meaningfully increase monthly costs compared to PA.

• Cherry Hill provides a wide range of neighborhoods and tax profiles, but buyers must compare block by block.

• Medford attracts buyers seeking space and community, with taxes that often surprise PA buyers new to NJ.

Takeaway: NJ taxes are higher on average—but buyers often know what they’re getting upfront.

4. Side-by-Side: NJ vs. PA Property Tax Structure

5. Real-World Comparisons by Market

Wayne (Radnor) vs. Haddonfield

• Wayne buyers often pay lower property taxes but may face higher purchase prices.

• Haddonfield buyers pay higher taxes but benefit from walkability, PATCO access, and clean district alignment.

Doylestown (Central Bucks) vs. Moorestown

• Similar lifestyle appeal and buyer profile.

• Moorestown taxes often push monthly costs higher despite comparable home prices.

West Chester vs. Medford

• West Chester buyers may see moderate taxes paired with a vibrant downtown and dining scene.

• Medford buyers gain space and community feel, but NJ taxes can narrow affordability faster.

Key insight: Buyers should compare total monthly payment, not just purchase price.

6. How Taxes Affect Buying Power and Monthly Cost

A higher tax bill can:

• Reduce buying power by tens of thousands of dollars

• Push buyers into smaller homes or less ideal locations

• Affect qualification with lenders

For example, an extra $5,000–$7,000 per year in taxes can feel like an additional mortgage payment—especially for move-up buyers.

7. Common Buyer Misconceptions

• “NJ is always more expensive.” Sometimes true, but not universally.

• “PA taxes are low.” Not always—strong districts can rival NJ totals.

• “I can estimate taxes from list price.” In PA, this is especially unreliable.

• “Taxes don’t matter for resale.” They absolutely do—future buyers feel them too.

8. Strategic Advice for Buyers in 2026

Smart buyers:

• Request the actual tax bill early

• Model monthly costs with their lender

• Consider resale demand, not just current needs

• Balance lifestyle, commute, schools, and taxes together

The best decisions are holistic, not tax-driven alone.

9. Final Takeaways

New Jersey generally offers predictability with higher taxes, while Pennsylvania offers variability with opportunity. Neither system is “better”—they simply reward different buyer priorities.

In 2026, successful buyers choose based on total cost, lifestyle fit, and long-term resale confidence, not just the lowest tax number.

By Eric Kelley, Philadelphia Suburbs Realtor & Attorney