New Jersey · 144th largest metro area

Buying a home in Trenton, New Jersey

In Trenton, the median value of owner-occupied homes is $160,700, Mercer County's effective property tax rate is 2.36%, a purchase mortgage carried a median $6,854 in total loan costs in 2025, and median gross rent is $1,294 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Trenton home costs, fact by fact

About Trenton

Trenton is the first-named place in the Trenton-Princeton, NJ metro area. Homeowners estimate their median home value at $160,700, a self-reported figure rather than a sale price, and only 37.9% of homes are owner-occupied. HUD's two-bedroom Fair Market Rent is $2,242.

Reading the Trenton figures

Trenton stands far below the New Jersey median of $496,000: owners estimate their homes at $160,700, and every other covered city of the state reads higher, from Newark at $373,700 to Jersey City at $566,900. Yet Mercer County's 2.36% rate is the type of figure a buyer should price in, since annual property tax comes to $8,909 for the median home, which the county values at $377,700. Owners occupy only 37.9% of homes. Median gross rent is $1,294, well under HUD's $2,242 benchmark for a 2-bedroom. Of the 2,662 loans in the county's 2025 filings, the typical one cost $6,854 to originate, and the interquartile range ran from $5,251 to $10,380.

Calculate for New Jersey

If you buy

New Jersey state transfer tax

Realty Transfer Fee (plus Graduated Percent Fee above $1,000,000): Over $350,000: $2.90 per $500 on the first $150,000, $4.25 on $150,000 to $200,000, $4.80 on $200,000 to $550,000, $5.30 on $550,000 to $850,000, $5.80 on $850,000 to $1,000,000, $6.05 above $1,000,000; plus 1% to 3.5% of total price above $1,000,000.

Price$496,000
State transfer taxnot computed
Who paysThe seller

Default price: the New Jersey median value of owner-occupied homes, $496,000 (Census ACS 2024). Not computed: Banded rate per $500 of consideration. Total consideration over $350,000: $2.90 on the first $150,000, $4.25 on $150,000-$200,000, $4.80 on $200,000-$550,000, $5.30 on $550,000-$850,000, $5.80 on $850,000-$1,000,000, $6.05 above $1,000,000. At or below $350,000 a lower schedule applies: $2.00, $3.35 and $3.90 per $500 in the bands up to $150,000, $200,000 and $350,000. Above $1,000,000 total, add a Graduated Percent Fee on the whole price: 1% to $2,000,000; 2% over $2,000,000 to $2,500,000; 2.5% over $2,500,000 to $3,000,000; 3% over $3,000,000 to $3,500,000; 3.5% over $3,500,000. Who pays: The seller owes the Realty Transfer Fee. For deeds submitted on or after July 10, 2025 the Graduated Percent Fee is also imposed on the seller (before that the 1% fee was buyer-paid). Not included: county and city transfer taxes, recording fees, title insurance and lender charges. New Jersey transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: New Jersey state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Trenton

How much is property tax in Trenton?

Homeowners in Mercer County pay a median $8,909 a year in property tax, 2.36% of the county median home value of $377,700 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Trenton?

Home-purchase mortgages in Mercer County carried median total loan costs of $6,854 in 2025; half of the 2,662 loans fell between $5,251 and $10,380 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Trenton?

New Jersey charges a Realty Transfer Fee on every deed, paid by the seller, which is $4,655 on a $550,000 sale. For deeds submitted on or after July 10, 2025, a seller-paid Graduated Percent Fee of 1% to 3.5% of the entire price also applies above $1 million.

Is it cheaper to rent or buy in Trenton?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Trenton ($160,700) equals 10.3 years of the median gross rent ($1,294 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

New Jersey rules that apply in Trenton

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Sources

New Jersey · All states · Federal guides