Overview of New Jersey Taxes
Homeowners in New Jersey pay the highest property taxes of any state in the country. In fact, the median property tax bill is nearly triple the national median. The effective property tax rate in New Jersey is 1.89%, compared to the national median of 0.89%.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
New Jersey Property Taxes
Thinking about a move to New Jersey? Keep in mind that homeowners in the Garden State pay the highest property taxes in the country. The median property tax payment in New Jersey is at $9,358. As a result, the state's effective property tax rate is 1.89%, more than double national average of 0.90%.
Don’t let the high property taxes scare you away from buying a home in New Jersey. If you are looking to purchase a property in the Garden State, or if you want to refinance your current mortgage, check out our mortgage guide for information about New Jersey mortgage rates and other details.
A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How New Jersey Property Taxes Work
Property taxes in New Jersey go entirely to local governments. Bills are paid annually across four installments, which are due on the first of February, May, August and November. The amount a homeowner in New Jersey pays depends primarily on the value of his or her home and the total tax rates among all local tax authorities.
Home value is determined by assessors in New Jersey’s 564 municipalities. Since these assessors may use different techniques, it’s possible that they undervalue or overvalue homes in their district. The New Jersey Division of Taxation offsets this annually by determining an equalization ratio that ensures everyone in a tax district pays their fair share.
New Jersey Property Tax Rates
Property tax rates in New Jersey vary significantly by city and county. Municipalities, counties and school districts all determine their own rates. There may also be additional tax rates that apply for specific purposes such as parks or libraries.
Since assessed values in one city are not necessarily equivalent to assessed values in another, it is useful to look at effective tax rates. The effective tax rate is the amount paid annually as a percentage of home value.
An average effective tax rate presents an indication of the overall level of taxes in an area, but it’s not used to actually calculate individual tax bills. The table below shows the average effective tax rate a cross section of counties in New Jersey.
Looking to calculate your potential monthly mortgage payment? Check out our mortgage calculator.
Middlesex County
Middlesex County is part of the New York City metropolitan area. The effective property tax rate in the county is 1.82%, slightly below the state average. The median homeowner here pays $9,427 annually in property taxes.
Hudson County
With over 730,000 residents, Hudson County is the fourth-most populous county in New Jersey and one of the most densely populated areas in the U.S. Hudson County's median annual property tax bill is $9,752. As a result, the county has an effective property tax rate of 1.69%, which is less than the statewide effective rate.
Monmouth County
Situated along the Atlantic Coast in central New Jersey, Monmouth County has one of the lower effective property tax rates among New Jersey’s counties (1.48%). The county's median home value is close to $674,100, which is quite high, and its median annual property tax payment is $10,000.
Ocean County
If you want to buy beachfront property with relatively low property taxes in New Jersey, Ocean County may be the place. The effective tax rate in the county is 1.42%. Likewise, the median annual property tax payment in the county is $6,441, well below the statewide median.
Camden County
Buying a home in Camden County? The bad news is that the county’s effective property tax rate is among the highest in the stat at 2.32%. However, home values in this part of the state are quite a bit lower than other counties at just $334,900.
If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Cherry Hill can help you out.
