My Property Taxes Cost Almost $20,000 a Year. Here's Why I'm Not Moving

I own a home in New Jersey, which has the dubious distinction of having the highest property taxes in the nation. And while my property taxes weren't always as high, these days, my bill is around $20,000 a year. Clearly, that's not ideal. And what's also so frustrating is that I can't come close to writing off my property taxes in full.

Thanks to a change in the tax code a few years back, the state and local tax deduction is capped at $10,000. That only covers about half of my tab. But while I'm not thrilled with my property tax burden, I also don't plan to move anytime soon for these reasons.

1. A new mortgage would cost me a lot

I could move to another state where property taxes aren't nearly as expensive. But buying a new home means signing a new mortgage loan. And that's not something I want to do right now.

Mortgage rates are higher today than they've been in years. And I happen to have a low interest rate on my current mortgage thanks to the refinance I did back in 2020, when rates were much lower. In fact, the low interest rate on my mortgage helps offset the high cost of my property taxes, since my mortgage payments themselves are quite manageable for a home in my neck of the woods.

2. A move might save me on property taxes, but cost me via a higher home price

There are different towns I might consider moving to within New Jersey that have lower property tax rates than my town. But in a lot of those towns, home prices are higher. The same holds true for nearby states -- what I might gain in the form of a lower tax rate, I'm likely to lose in the form of paying more for my home and having higher mortgage payments to deal with.

3. Most of the places I'd be looking to live have high property taxes, too

I could save money on property taxes by moving to a neighboring state. But the taxes there aren't exactly a bargain, either. So all told, I don't really feel like I'd gain much financially.

I'm resigned to high property taxes for now

I don't love the fact that my property tax bill is so astronomical. But at the same time, I don't have many better options.

I'm somewhat tethered to the East Coast to be relatively close to family (though I don't have any in New Jersey, they're within driving distance) and also due to the nature of my husband's job. And also, as a mom, it's important to me to live in an area with good schools.

A big reason our property taxes are so high is that a lot of that money gets pumped into the school system. So while I wouldn't want to be paying these taxes if I didn't have kids enrolled in school, at least I feel like I'm getting something out of them.