Taxes in Cape May

Cape May carries New Jersey's statewide income and sales tax structure with a real, genuinely low local property-tax rate that this record explains rather than treats as a simple discount.

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A genuinely low property-tax rate, with a real mechanic behind it

Cape May County's average effective property tax rate (~1.07%) runs well below New Jersey's 1.88% statewide average -- driven by a small year-round population spread across a very high total assessed-value tax base from expensive second homes, not a lower overall tax burden per property.

New Jersey's statewide graduated income tax applies

New Jersey's real, seven-bracket graduated income tax (1.4%-10.75% above $1 million) applies in Cape May exactly as documented statewide -- Cape May levies no additional city income tax.

Confirm the current, specific municipal rate

This record uses the Cape May County average given a Cape May CITY-specific rate could not be independently confirmed this pass -- confirm the current, precise city rate directly with the Tax Collector.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.