New Jersey mortgage payment calculator

New Jersey at a glance

Median home price

$550,000

Typical closing costs

2%–5% of price

Transfer tax

1% of sale price, customarily paid by seller

Closing custom

varies

Homestead exemption

New Jersey has no classic ad-valorem homestead exemption (no flat dollar/percent reduction in assessed value like FL or TX). Instead relief runs through rebate-style programs administered by the Division of Taxation: (1) ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) — the broad annual rebate that replaced the old Homestead Rebate/Benefit program in 2022, paying eligible homeowners a check/credit generally $1,000-$1,750 depending on 2025 income and age (65+), with income eligibility up to roughly $250,000 for homeowners; renters get a smaller flat amount. (2) Senior Freeze (Property Tax Reimbursement) — freezes/reimburses property tax increases above a base year for eligible seniors (65+) or disabled residents who have owned and lived in the home 10+ continuous years, with an income cap around $168,000-ish (indexed annually). (3) Stay NJ — a newer credit specifically for seniors 65+, coordinated with ANCHOR and Senior Freeze so households don't double-benefit. All three now share a single combined PAS-1 application. None of these reduce the assessed value the way a Southern/Sunbelt-style homestead exemption does; they are rebate/reimbursement checks or credits layered on top of the full assessed tax bill, which is why NJ's nominal effective property tax rate stays the highest in the country even with these programs in place.