Moving from New Jersey to Pennsylvania — Bucks County Is Across the Bridge and Your Property Tax Bill Just Got Cut in Half

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→ The property tax story → Income tax comparison → Housing comparison → What you save → How close is it really → Best communities → Schools → Moving elsewhere in PA → FAQ → Download My KW App To Explore Properties in PA

The Property Tax Story — Why New Jersey Became the #1 State to Move Away From

In 2018 New Jersey was ranked the number one state to move away from in the United States — 67% of moves were outbound versus 33% inbound. The primary reason was not the weather. It was not the schools, which are genuinely strong. It was not the location, which is objectively excellent. It was the property taxes. They are structurally unsustainable for a broad and growing segment of New Jersey homeowners and the data makes this impossible to argue against.

On a $700,000 home in Mercer County New Jersey versus Bucks County Pennsylvania — the annual property tax difference is approximately $8,000 per year. Over a 30-year mortgage that's $240,000 in additional taxes paid on the same priced home across the river. That's not a rounding error. A $700,000 home in Bucks County, PA might save you over $8,000 annually in property taxes compared to the same-priced home in Mercer County, NJ. Over a 30-year mortgage, that's $240,000 in savings — essentially knocking off a third of your original purchase price.

And that's before accounting for income tax. New Jersey's income tax goes up to 10.75% at the top bracket — the fourth highest top rate in the country behind California, Hawaii, and New York. Pennsylvania's flat 3.07% is the lowest income tax rate in the Northeast for states that have one at all.

The combination of the highest property taxes in America and the fourth highest top income tax rate is why New Jersey has been losing residents for years. The move across the Delaware River is the most obvious escape route available.

New Jersey vs Pennsylvania — The Complete Tax Picture

The New Jersey exit tax — what you need to know before you sell

New Jersey requires sellers who are moving out of state to prepay an estimated capital gains tax at closing — typically 8.97% of the gain or 2% of the sale price, whichever is higher. This is not an additional tax — it's a prepayment that gets reconciled when you file your final New Jersey return. But it's a significant cash flow item that catches many sellers off guard at the settlement table. If you're selling a New Jersey home to buy in Pennsylvania, budget for this prepayment in your closing cost calculations. Your NJ real estate attorney should walk you through the exact amount for your situation before closing.

How Close Is Pennsylvania to New Jersey — The Bridge Reality

North Jersey buyers — Bergen, Morris, Essex, Hudson County — have a longer geographic transition but the financial math is even more compelling because North Jersey property taxes are among the highest in a state that already has the highest in the country. The commute to Manhattan from Bucks County via Amtrak is comparable to New Jersey Transit from many North Jersey locations once you account for the full door-to-door timing rather than just the rail segment.

The Real Annual Savings — New Jersey to Bucks County PA

Over 30 years of homeownership that property tax differential alone — $8,190 per year — compounds to $245,700 in additional taxes paid on the New Jersey side of the river versus the Pennsylvania side for an identical home value. Add the income tax differential and the lifetime financial improvement from crossing the Delaware exceeds $400,000 for a household earning $150,000.

That's the number that's been driving New Jersey's outbound migration for years. And Bucks County is the most obvious destination because it's right there.

New Jersey vs Bucks County — What Your Budget Buys

The housing price comparison between New Jersey and Bucks County is more nuanced than the California or New York comparisons because parts of New Jersey and Bucks County have comparable home prices. The financial advantage is primarily in the ongoing cost — property taxes, income taxes — rather than the purchase price itself. That said, the total cost of ownership is dramatically lower in Bucks County even when purchase prices are similar.

Which Bucks County Community Is Right for NJ Buyers

For Princeton / Central NJ buyers — New Hope or Washington Crossing

Princeton area buyers crossing Route 202 at Lambertville find New Hope directly across the bridge. New Hope has the arts community and Delaware River character that Princeton-adjacent buyers recognize and value. The cultural infrastructure — restaurants, galleries, the Bucks County Playhouse — is comparable to what makes central NJ's more desirable communities worth the property tax burden. Except in New Hope it comes without that burden. Washington Crossing is the quieter, more family-oriented alternative for the same demographic — historic riverfront character, Council Rock School District, and home prices that make the property tax savings immediately obvious.

For Mercer / Middlesex County buyers — Newtown or Doylestown

The I-95 corridor buyer from Trenton, Lawrence, or Hamilton finds Newtown PA directly across the bridge — 20 to 25 minutes. Council Rock School District, the best I-95 access in Bucks County, and a historic borough core that delivers genuine community character at prices and property taxes that Mercer County cannot match. Doylestown is 35 to 40 minutes from the Trenton area and delivers the county seat experience — walkable, culturally dense, Central Bucks School District.

For South Jersey / Cherry Hill buyers — Fort Washington or Horsham

South Jersey buyers crossing the Delaware via the Ben Franklin or Walt Whitman bridges find Montgomery County — Fort Washington, Horsham, and Willow Grove — directly accessible. Upper Dublin Township School District, SEPTA Regional Rail to Center City, and property taxes significantly below comparable South Jersey communities. The commute to Philadelphia actually improves for many South Jersey buyers moving to Montgomery County.

For North Jersey buyers — Main Line or Montgomery County

Bergen, Morris, and Essex County buyers making the longer geographic transition to Pennsylvania find the Main Line corridor — Wayne, Devon, Berwyn, Paoli — delivers the upscale suburban character they're accustomed to at property tax rates dramatically below what North Jersey charges. The Radnor and Tredyffrin-Easttown school districts compete directly with the strongest Morris and Bergen County districts on academic outcomes while carrying property tax burdens that are thousands of dollars lower per year.

Pennsylvania vs New Jersey School Districts — The Real Comparison

New Jersey's public schools are genuinely strong — the state consistently ranks in the top five nationally for public education. This is the most legitimate reason to stay in New Jersey and it deserves an honest answer rather than dismissal.

The honest answer is that Pennsylvania's top school districts — Lower Merion, Tredyffrin-Easttown, Central Bucks, Council Rock, New Hope-Solebury, Upper Dublin — compete directly with New Jersey's best districts on every meaningful academic metric. The College Board AP data, the National Merit Scholar production, the college placement outcomes — these Pennsylvania districts are not consolation prizes. They are genuinely excellent by any national measure.

The distinction is cost. New Jersey's strong school districts are funded by the property taxes that are driving people across the river. Pennsylvania's equivalent school districts are funded by lower property taxes. The academic outcome is comparable. The annual cost to access it is thousands of dollars lower in Pennsylvania.

The Philadelphia Advantage — Why South Jersey Buyers Gain, Not Lose

South Jersey buyers sometimes frame the move to Pennsylvania as leaving Philadelphia's orbit. This framing is backwards. Philadelphia is directly accessible from Bucks County and Montgomery County — and in many cases more accessible than it is from South Jersey suburbs that are technically in the Philadelphia metro but require navigating bridges and Philadelphia surface streets to access Center City.

From Doylestown or Warrington, Philadelphia is 35 to 50 minutes north-south on Route 611 or I-276. From Fort Washington, SEPTA Regional Rail to Center City is 35 to 40 minutes. The cultural assets of Philadelphia — the museums, the food scene, the sports, the performing arts — are available from Bucks County at the same or shorter travel time as many South Jersey communities.

Moving Somewhere Else in Pennsylvania?

Questions About Moving from New Jersey to Pennsylvania

Why are so many people moving from New Jersey to Pennsylvania?

New Jersey has the highest property taxes in the United States — the median annual property tax is $8,362 statewide and significantly higher in desirable communities. Combined with a state income tax that reaches 10.75% at the top bracket, New Jersey's total tax burden drives a persistent outbound migration that ranked the state first in outbound moves in 2018. Pennsylvania offers dramatically lower property taxes — approximately 1.45% effective rate in Bucks County versus 2.62% in comparable Mercer County New Jersey — a flat 3.07% income tax, and no tax on retirement income. For families in New Jersey who have done the math, the financial case for crossing the Delaware River is among the strongest of any domestic relocation.

How close is Bucks County PA to New Jersey?

Bucks County Pennsylvania borders New Jersey across the Delaware River. Trenton NJ to Newtown PA is approximately 20 to 25 minutes by car via the I-95 bridge. Princeton NJ to New Hope PA is approximately 25 to 30 minutes via the Route 202 bridge at Lambertville. For Central and South New Jersey buyers this is a bridge crossing — not a distant relocation. Friends, family, and professional connections remain accessible. The lifestyle disruption is minimal. The financial improvement is significant and immediate.

What is the property tax difference between New Jersey and Pennsylvania?

New Jersey's effective property tax rate in desirable communities ranges from approximately 2.16% in Bergen County to 2.62% in Mercer County. Bucks County Pennsylvania's effective rate is approximately 1.45% and Montgomery County approximately 1.52%. On a $700,000 home, the annual property tax difference between Mercer County NJ and Bucks County PA is approximately $8,190 per year. Over a 30-year mortgage that accumulates to approximately $245,700 in additional taxes paid on the New Jersey side versus the Pennsylvania side for an identical home value.

Are Pennsylvania school districts as good as New Jersey school districts?

Pennsylvania's top school districts — Lower Merion, Tredyffrin-Easttown, Central Bucks, Council Rock, New Hope-Solebury — compete directly with New Jersey's strongest districts on AP course offerings, National Merit Scholar production, and college placement outcomes. New Jersey's public schools rank nationally among the top five states. Pennsylvania's top districts are not the entire state average — they are the specific communities that Bucks County and Montgomery County buyers access. The academic outcomes are comparable at the community level. The annual cost to access them — through property taxes — is thousands of dollars lower per year in Pennsylvania.

What is the New Jersey exit tax and how does it affect moving to Pennsylvania?

New Jersey requires sellers moving out of state to prepay an estimated capital gains tax at closing — typically 8.97% of the estimated gain or 2% of the sale price, whichever is higher. This prepayment is reconciled when you file your final New Jersey tax return and refunded if your actual liability is lower. It is not an additional tax but it is a significant cash flow item — on a $700,000 home sale it can represent $14,000 or more withheld at closing. Budget for this in your planning and have a New Jersey real estate attorney calculate the exact amount for your specific transaction before you close.

What does $700,000 buy in Bucks County PA versus New Jersey?

In Bucks County at $700,000 — a premium 4 to 5 bedroom colonial on a half-acre or larger lot in Doylestown Township, Newtown, New Hope area, or Jamison. Central Bucks, Council Rock, or New Hope-Solebury School District. Property taxes of approximately $10,000 to $11,000 per year. In Mercer County NJ at $700,000 — a comparable quality home with property taxes of approximately $18,000 to $20,000 per year. The home quality is similar. The annual carrying cost difference is $7,000 to $9,000 per year — forever.