Cost of Living in Cape May
Cape May's cost of living is genuinely shaped by expensive housing and real flood-insurance costs, partially offset by a comparatively low property-tax rate.
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Learn moreExpensive housing, low property tax rate
Zillow's typical home value ran approximately $685,212 (mid-2026) -- well above New Jersey's own statewide average -- while Cape May County's ~1.07% average effective property tax rate runs genuinely below NJ's 1.88% statewide figure.
A real, substantial flood-insurance line item
Coastal Zone VE flood-insurance premiums in Cape May County can exceed $6,000/year -- a real, material cost this record does not let the low tax rate offset in the total budget picture.
New Jersey's statewide income and sales tax apply
Cape May carries no city-specific income or sales tax layer -- New Jersey's graduated state income tax (1.4%-10.75%) and uniform 6.625% sales tax apply exactly as documented statewide.
Key takeaways
- Cape May's typical home value ($685,212) runs well above the NJ statewide average.
- A genuinely low property-tax rate is real but offset by substantial flood-insurance costs specific to the coast.
- New Jersey's statewide income and sales tax structure applies with no Cape May-specific local layer.
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