South Jersey is often overlooked in statewide tax guides that focus heavily on the New York commuter corridor. But residents of Camden, Burlington, Gloucester, Atlantic, Cape May, Cumberland, and Salem counties have their own distinct tax situations — lower property values, fewer NYC commuters, a large veteran and military population near Joint Base McGuire-Dix-Lakehurst, Atlantic City tourism workers, and farmland assessment programs that don’t exist anywhere else in the state.
South Jersey Property Taxes: Lower Bills, Better Federal Deductibility
Here’s one advantage South Jersey homeowners have over their counterparts up north: lower property taxes mean the $10,000 federal SALT cap is less likely to cut off your full deduction. In much of South Jersey, annual property tax bills fall in the $4,000–$8,000 range — meaning homeowners still have room in the SALT cap for state income taxes and may be able to deduct a meaningful amount of both.
Average property tax estimates by South Jersey county:
| County | Avg. Annual Property Tax | Federal Deductibility |
|---|---|---|
| Burlington | $6,500–$9,000 | Often fully deductible under SALT cap |
| Camden | $5,500–$8,500 | Often fully deductible under SALT cap |
| Gloucester | $5,000–$8,000 | Often fully deductible under SALT cap |
| Atlantic | $5,000–$9,000 | Often fully deductible under SALT cap |
| Cape May | $5,000–$12,000 | Varies; shore properties may hit cap |
| Cumberland | $3,500–$6,000 | Usually fully deductible under SALT cap |
| Salem | $3,000–$5,500 | Usually fully deductible under SALT cap |
Farmland Assessment: A Unique South Jersey Tax Program
New Jersey’s Farmland Assessment Act allows agricultural land to be assessed based on its productivity rather than its market value — dramatically reducing property taxes for qualifying farms. This is especially relevant in Burlington, Gloucester, Salem, Cumberland, and parts of Atlantic and Cape May counties, which have significant agricultural land.
If you own farmland assessed under the farmland program, your property taxes will be much lower than market-rate assessment. This can affect how much of the SALT cap you actually use. When qualifying farmland is developed or converted to non-agricultural use, a rollback tax applies — essentially recapturing the tax savings from the prior years.
Atlantic City and the Casino/Hospitality Workforce
Atlantic City’s casino and hospitality workforce includes a large number of tipped employees, part-time workers, and workers who shift between W-2 and 1099 income throughout the year. Key deduction considerations for this workforce:
- Tips must be reported: All tip income is taxable and must be reported, but it also counts toward earned income for the Earned Income Tax Credit (EITC) — a refundable credit that can be worth up to $7,830 for qualifying workers with children in 2025.
- Uniform deductions: Work uniforms that are required and not suitable for everyday wear are deductible — but only for self-employed workers. Casino employees (W-2) cannot deduct unreimbursed uniform costs at the federal level.
- Union dues: No longer deductible at the federal level for W-2 employees since 2018.
Joint Base McGuire-Dix-Lakehurst: Military and Veteran Deductions
Burlington County is home to Joint Base McGuire-Dix-Lakehurst, one of the largest military installations on the East Coast. Military families and veterans in the area have access to specific tax benefits:
- Military pay exclusion: Combat pay is excluded from federal taxable income. Active duty pay in a combat zone is entirely tax-free.
- NJ military pay exclusion: New Jersey excludes all military pay received by active duty service members from NJ income tax — a state-level benefit that applies regardless of federal treatment.
- Moving expenses for military: Unlike civilians, active-duty military members can still deduct unreimbursed moving expenses when ordered to a permanent change of station.
- Veteran property tax exemptions: NJ provides a $250 property tax deduction for honorably discharged veterans, and total exemption from property taxes for 100% disabled veterans. Apply through your local tax assessor’s office.
Cherry Hill and Camden County Suburbs: Commuters to Philadelphia
Many Camden County residents — particularly in Cherry Hill, Voorhees, Haddonfield, and Collingswood — commute to Philadelphia for work. Like NYC commuters in North Jersey, these workers pay Pennsylvania income tax on their Philadelphia/PA earnings and NJ income tax on the same income.
New Jersey provides a credit for taxes paid to Pennsylvania on the NJ-1040 Schedule A, offsetting the double taxation. Pennsylvania also has a reciprocal arrangement for some filing situations. Make sure your employer is withholding correctly for your actual work state — many Camden County commuters have incorrect PA withholding that requires a refund claim.
Key Resources for South Jersey Taxpayers
- Property tax deduction — South Jersey bills often fall under the SALT cap
- NJ ANCHOR benefit — statewide; apply separately
- NJ senior tax deductions — Senior Freeze and other programs
- NJ-1040 income tax deductions
- Full NJ tax deductions guide