New figures from the New Jersey Department of Community Affairs show that homeowners in New Jersey are once again paying the highest property taxes in the nation, with the average bill surpassing $10,000 for the second straight year.

The milestone underscores a long-running reality in the state: property taxes remain the primary way communities fund schools, municipal services and local infrastructure. Education alone accounts for about 52% of the typical tax bill, making school funding the single largest driver of costs for homeowners.

Locally, homeowners continue to feel steady upward pressure.

In Lakewood, the average 2025 property tax bill rose to $8,974, a 6.23% increase from the previous year, with average home values at $364,614.

Nearby Jackson recorded an average bill of $9,047, up 6.42%, alongside higher average property values of $652,896.

In Toms River, homeowners paid an average of $8,526, reflecting a nearly 8% jump. Manchester Township remained more affordable, with average taxes of $5,328, while Howell Township approached the $10,000 mark at $9,883.

At the top of the property tax list in New Jersey is Tavistock in Camden County, where the average property tax bill reached $38,387. The borough is home to just three residences, all surrounding a private golf course. Ownership is limited to club members, making Tavistock an ultra-exclusive outlier in both wealth and tax burden.

Millburn, in Essex County, ranked second-highest statewide, with residents paying an average of $26,292.

On the other end of the spectrum is Walpack in Sussex County, where average taxes were just $1,143. But Walpack’s unusually low figure reflects its tiny population — fewer than 10 residents — and the absence of a school district or full-time municipal staff.

Unlike many states, New Jersey relies heavily on local property taxes to finance public education and municipal operations. With limited county- or state-level relief, towns must raise revenue primarily through homeowners.

As housing values climb and school costs rise, tax bills tend to follow, regardless of residents’ income levels. Over time, this structure has pushed New Jersey to the top of national rankings for property taxes, a position it has held for years.