06/09/2026
New Jersey has the highest property taxes in the country. That is not an opinion. It is a fact, and it is the first thing I talk about with almost every New Jersey buyer who calls me.
Here is what the math actually looks like in 2026.
On a $500,000 home in New Jersey you are paying approximately $11,150 a year in property taxes at the state's 2.23% effective rate. A comparable Chester County purchase runs meaningfully less even though Chester County carries some of Pennsylvania's higher rates because of the school district quality it supports.
Then there is income tax. New Jersey's progressive rate climbs as high as 10.75% at the top bracket. Pennsylvania taxes everyone at a flat 3.07%. For a household earning $150,000 that difference alone can mean $6,000 or more back in your pocket every year.
Combined property tax and income tax savings for a typical buyer household moving from New Jersey to Chester County can run $8,000 to $12,000 annually. At current mortgage rates that kind of monthly savings supports roughly $130,000 in additional purchasing power. In practical terms, the New Jersey buyer who does this math often realizes they can afford a better home in Chester County than they thought possible.
I have been financing this move for over 20 years. South Jersey buyers from Moorestown, Mount Laurel, and Cherry Hill landing in Downingtown, Exton, and West Chester. North Jersey buyers from Morris County and Somerset County finding Malvern and Paoli. Every situation is different but the tax picture almost always moves in the same direction.
If you are a New Jersey homeowner who has been doing this math and wondering whether Chester County makes sense for your family, this guide was written for you.
https://www.cmmortgage.com/moving-to-chester-county-pa-from-new-jersey/
