Bergen County is the most populous county in New Jersey, home to over 950,000 residents across 70 municipalities — and it has some of the highest property tax bills in the country. For Bergen County homeowners and the large population of commuters working in New York City, understanding which tax deductions apply at the federal level (and what’s different on the NJ state return) can mean thousands of dollars in savings.
Bergen County Property Taxes: Federal and State Treatment
Bergen County’s average property tax bill is among the highest in New Jersey — routinely above $12,000–$15,000 per year in towns like Ridgewood, Tenafly, Alpine, and Glen Rock. On your federal return, property taxes are deductible — but capped at $10,000 total under the SALT limit (combined with state income taxes). For most Bergen County homeowners, this means you’re capped out and can’t deduct every dollar you pay.
On your New Jersey state return, the picture is different. New Jersey allows a property tax deduction of up to $15,000 (or a credit) on your NJ-1040, completely separate from the federal SALT cap. The NJ property tax deduction is either a deduction from income or a credit of up to $50 — most homeowners take the deduction, which is the higher-value option. If you’re a renter, 18% of your annual rent is treated as the property tax equivalent for NJ deduction purposes.
NYC Commuters: The Dual Tax Issue
A large portion of Bergen County residents commute to Manhattan and pay New York City income tax on top of NJ state income tax. This creates a particularly painful tax situation — but also a specific deduction opportunity.
New Jersey offers a tax credit for income taxes paid to other jurisdictions on your NJ-1040. If you work in New York and pay NY state income tax on the same wages NJ taxes, you can claim a credit on your NJ return to offset the double taxation. This credit is calculated on NJ Schedule A and is one of the most important forms NYC commuters from Bergen County need to file correctly.
Note: NYC residents pay a city income tax; Bergen County residents who work in NYC do not pay NYC city income tax (only NYC residents pay that). But NY State income tax still applies to income earned in New York.
Home Office Deductions for Bergen County Remote Workers
Since 2020, a significant share of Bergen County’s workforce shifted to remote or hybrid work. If you’re self-employed and work from home in Hackensack, Paramus, Fort Lee, or anywhere else in Bergen County, the home office deduction is available to you at the federal level.
Given Bergen County’s high housing costs — median home values above $600,000 in many towns — the actual expense method of calculating the home office deduction often produces significantly higher deductions than the simplified $5/sq ft method. A 200 sq ft office in a home with a $3,000/month mortgage and high property taxes can generate a $4,000–$6,000+ deduction using actual expenses vs. $1,000 with the simplified method.
See the full simplified vs. actual method comparison to calculate which option saves you more given Bergen County housing costs.
Business Mileage: Bergen County to NYC and Beyond
Self-employed residents driving for business — to clients in Manhattan, to suppliers in Secaucus, or between job sites across Bergen County — can deduct business miles at 70¢ per mile in 2025. With Bergen County’s dense concentration of businesses and frequent cross-river trips, mileage adds up fast. Parking fees and tolls (including the George Washington Bridge) stack on top of the mileage rate as separate deductions.
Use the free mileage calculator to see your annual deduction from business driving.
The NJ ANCHOR Benefit for Bergen County Homeowners and Renters
The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program provides direct property tax relief to NJ homeowners and renters — it’s not a deduction but a direct payment from the state. For Bergen County homeowners with incomes under $150,000, the benefit is $1,500. For incomes between $150,000 and $250,000, it’s $1,000. Bergen County renters with incomes under $150,000 receive $450.
Applications are filed separately through the NJ Division of Taxation — it does not go on your tax return. If you haven’t applied for prior years, you may still be eligible to file retroactively.
Bergen County Municipalities With the Highest Property Taxes
| Municipality | Avg. Property Tax (est.) | Federal Deductible Amount |
|---|---|---|
| Alpine | $18,000+ | $10,000 (SALT cap) |
| Tenafly | $17,000+ | $10,000 (SALT cap) |
| Ridgewood | $16,000+ | $10,000 (SALT cap) |
| Glen Rock | $14,000+ | $10,000 (SALT cap) |
| Fair Lawn | $10,000–$12,000 | Up to $10,000 (SALT cap) |
| Hackensack | $8,000–$11,000 | Up to $10,000 (SALT cap) |
Key Deductions for Bergen County Residents to Review
- Property tax deduction — federal SALT cap of $10,000; NJ allows up to $15,000 separately
- Mortgage interest deduction — on up to $750,000 of loan balance
- Home office deduction — especially valuable given Bergen County housing costs
- Business mileage — 70¢/mile plus GWB tolls
- NJ ANCHOR benefit — direct state payment, separate from your tax return
- NJ state income tax deductions — different rules from federal
For a full overview of New Jersey-specific deductions and how they differ from federal rules, see the NJ tax deductions guide.