NJ vs. Florida Taxes: The Real Numbers Nobody Puts in Front of Bergen County Homeowners

How much do Bergen County homeowners actually save on taxes by moving to Florida? A Bergen County homeowner paying $13,000–$15,000 per year in property taxes, plus New Jersey state income tax, can realistically save $15,000–$25,000 or more annually after relocating to South Florida — depending on income, property value, and whether they claim Florida's homestead exemption.

You've heard the pitch. "Florida has no income tax." "Property taxes are lower." "You'll save a fortune."

All true. But vague.

What nobody does is sit down and show you the actual numbers — your property tax bill versus a comparable Florida bill, your New Jersey income tax versus zero, and what that math adds up to over five or ten years. Not as a sales pitch, but as a real financial comparison you can bring to your accountant.

That's what this post does.

Start With What You're Already Paying in New Jersey

New Jersey holds the distinction of having the highest effective property tax rate in the United States — a fact that has remained true for years running. According to the New Jersey Department of Community Affairs, the statewide average property tax bill crossed $10,000 for the first time in 2025, reaching approximately $10,095. The Tax Foundation's 2025 State Tax Competitiveness Index ranked New Jersey 49th out of 50 states overall, just ahead of New York.

Bergen County sits well above even that elevated state average.

The Bergen County median property tax bill is approximately $11,253 per year, with an effective tax rate of roughly 2.73%. But medians don't tell the full story for the towns where many of our clients live. Here's what the 2025 data actually shows for some of Bergen County's most established communities:

Source: NJ Department of Community Affairs, 2025 data reported February 2026.

This is the baseline. Before we talk about Florida, it's worth sitting with that number for a moment. If you own a home in Tenafly and your property tax bill is $25,000 a year, that's over $2,000 per month leaving your household before you pay a single other bill. Every year. Without end.

And it's been going up consistently. Bergen County property taxes have increased an average of 2–3% annually over the past decade. In 2025, several towns saw year-over-year increases exceeding $1,000 in a single year.

Layer in New Jersey State Income Tax

New Jersey levies a progressive state income tax with rates ranging from 1.4% on the lowest income levels up to 10.75% on income over $1 million. For a household earning $200,000 — a reasonable benchmark for the Bergen County homeowner considering a move — the effective New Jersey state income tax rate lands in the 5%–6% range, putting the annual state income tax bill in the $10,000–$12,000 range before any deductions.

Florida has no state income tax. None. It's prohibited by the Florida Constitution, which means it would require a constitutional amendment to change — a meaningful structural protection that makes the benefit durable, not just a policy that can be reversed in the next legislative session.

For a Bergen County household earning $200,000 annually and relocating to Florida, the income tax savings alone can approach $10,000–$12,000 per year.

Now Look at the Florida Side

Florida's property taxes are meaningfully lower than New Jersey's, but they're not zero — and the comparison is most useful when you're looking at real numbers for the counties where you'd actually live.

For South Florida specifically:

Palm Beach County (Boca Raton, Delray Beach, Boynton Beach) has an effective property tax rate of approximately 1.02%, according to SmartAsset. For a $500,000 home with the Florida homestead exemption applied, the annual bill runs approximately $5,100.

Broward County (Deerfield Beach, Pompano Beach, Fort Lauderdale) has an effective rate of approximately 0.94%–1.08%. For a comparable $500,000 primary residence with homestead, taxes typically fall in the $4,500–$5,500 range annually.

Those numbers are meaningful on their own. But the real story is what happens to them over time.

Florida's Homestead Exemption and the Save Our Homes Cap

Florida offers two distinct tax advantages that New Jersey does not — and together, they create a compounding benefit that grows the longer you own your Florida home.

The Homestead Exemption

When you purchase a Florida home as your primary residence and file for homestead exemption by March 1 of the first full tax year, you receive a reduction of up to $50,000 off your home's taxable assessed value — $25,000 applies to all property taxes, and an additional $25,000 applies to non-school property taxes. For a home assessed at $500,000, that brings the taxable value down to $450,000–$475,000 before the millage rate is applied.

The Save Our Homes Cap

Once you have homestead status, Florida limits the annual increase in your property's assessed value to 3% or the rate of inflation, whichever is lower. In a rising real estate market, this becomes extraordinarily valuable. Your neighbor who bought after you and doesn't have years of Save Our Homes cap protection may be paying significantly more on a similar home because their assessed value has tracked market value. Yours has not.

This is one of the structural reasons why long-term Florida homeowners often have property tax bills far below what you'd expect given their home's current market value — and it's a benefit that begins accruing from the first year you establish residency.

New Jersey has no equivalent protection. Your assessment can rise with the market, and your bill follows.

The Side-by-Side: A Real Scenario

Let's build a concrete example that reflects a realistic Bergen County seller making a move to Palm Beach County.

The NJ Side:

• Home town: Paramus, Bergen County
• Annual property taxes: $13,058
• Annual NJ state income tax (household income $180,000): approximately $9,200
• Total annual NJ tax burden (property + state income): approximately $22,258

The Florida Side:

• Destination: Boca Raton, Palm Beach County
• Home purchase price: $475,000 (purchased with Bergen County equity, no mortgage)
• Assessed value after homestead exemption: approximately $425,000
• Annual property taxes at 1.02% effective rate: approximately $4,335
• Annual Florida state income tax: $0
• Total annual FL tax burden (property + state income): approximately $4,335

Annual savings: approximately $17,923

Over ten years, compounded with modest annual increases on the NJ side and the Save Our Homes cap protection on the Florida side, that gap widens considerably. Over a decade, the cumulative tax savings in a scenario like this can approach or exceed $200,000.

That's not a projection pulled from optimism. It's the math that falls out of publicly available tax rates applied to real numbers.

What About the Federal SALT Deduction?

This is worth addressing directly because it comes up in conversations.

The federal SALT (state and local tax) deduction was capped at $10,000 per year for most filers under the Tax Cuts and Jobs Act. The cap is currently being legislated — as of 2025, it has been raised to $40,000 for certain income levels — but even with a more generous SALT deduction available, you can only deduct taxes you're actually paying. Lower taxes mean a smaller deduction, not a reason to keep paying high taxes.

Some Bergen County homeowners have convinced themselves that the SALT deduction offsets the pain of their property tax bill. For most, it doesn't — and even where it offers partial relief, paying less in the first place is mathematically superior.

The Tax Picture Is Broader Than Just Property and Income

A complete comparison of New Jersey and Florida taxes for a relocating homeowner also includes:

NJ Inheritance Tax. New Jersey is one of very few remaining states with both an estate tax and an inheritance tax. Heirs who are not immediate family members (children, spouses) may face a New Jersey inheritance tax on assets received. Florida has no inheritance tax and no state estate tax.

Retirement Income. New Jersey does not tax Social Security benefits, which is a genuine advantage. But it does tax pension and retirement income above certain thresholds. Florida taxes none of it. For a retiree drawing from a pension, IRA distributions, or investment income, the Florida advantage compounds.

Florida's Constitutional Protection. It bears repeating: Florida's prohibition on a state income tax is constitutionally embedded. That structural protection is meaningfully different from a state that simply chooses not to tax income by policy — it can't be changed by a simple legislative vote or a governor's budget priorities.

What This Doesn't Mean

This post isn't an argument that everyone in Bergen County should move to Florida. It's a presentation of what the financial picture actually looks like for those who are already thinking about it.

The tax math is compelling. But it's one input among several. Your family ties, your lifestyle preferences, your healthcare relationships, and your connection to this community are real. They matter. They don't show up on a tax comparison table.

What the math does is remove the uncertainty from one piece of a larger decision. If you've been telling yourself "Florida is cheaper, but I'm not sure how much," now you have a number. For many Bergen County homeowners, the honest answer is: considerably more than you thought.

FAQ

Does New Jersey tax retirement income? New Jersey does not tax Social Security benefits. However, pension income, IRA distributions, and other retirement income are subject to NJ state income tax above certain exclusion thresholds. Homeowners age 62 or older with income under $150,000 may be eligible to exclude up to $100,000 in retirement income (married, filing jointly). Florida taxes none of it, regardless of amount.

How does the Florida homestead exemption work for someone moving from New Jersey? To qualify for Florida's homestead exemption, the property must be your primary residence as of January 1 of the tax year, and you must apply through your county property appraiser's office by March 1. Once established, the exemption reduces your assessed value by up to $50,000 and activates the Save Our Homes cap, which limits future assessed value increases to 3% or CPI per year. You cannot claim homestead if you maintain a primary residence designation — or similar exemption — in another state.

Can I keep my New Jersey home and still claim Florida homestead? No. Florida's homestead exemption requires the property to be your primary, permanent residence. You cannot legally claim homestead in Florida while simultaneously maintaining a homestead or similar residency designation in New Jersey. If you maintain both homes, you need to formally establish Florida as your legal domicile — which involves changing your driver's license, voter registration, and other legal ties to Florida. An estate attorney familiar with Florida domicile law can walk you through the process.

Is the SALT deduction increase making it less urgent to leave New Jersey? A higher SALT cap reduces — but does not eliminate — the financial case for leaving. The SALT deduction caps apply federally, and even with expanded limits, you can only deduct taxes you're paying. Paying $13,000 in NJ property taxes and deducting some of it is still more expensive than paying $4,500 in Florida property taxes and deducting less. The deduction is a partial offset, not a reason to stay.

The Decision Is Personal. The Math Is Not.

The tax comparison between Bergen County and South Florida is not ambiguous. New Jersey consistently ranks among the worst states for overall tax burden. Florida consistently ranks among the best. For a homeowner with substantial equity and income in retirement, the annual savings are real, significant, and durable.

What you do with that information is entirely up to you.

If you want to run these numbers for your specific situation — your property tax bill, your income, and a realistic Florida property that fits your budget and lifestyle — that conversation is worth having.

Scott Selleck, REALTOR® with The Selleck Group at KW City Views Realty, built the NJ→FL Transition Plan™ specifically to help Bergen County and Hudson County homeowners move through this decision with clarity — on the finances, the timing, the real estate on both sides, and everything in between.

Call or text 201-970-3960 | [email protected] | SelleckSellsNJ.com

This post is for informational purposes only and does not constitute tax or legal advice. Consult a qualified tax professional for guidance specific to your financial situation.