NJ towns are ranked highest to lowest, as well as the percentage tax hikes or cuts. See how expensive it's gotten to live in your town.
Tom Davis, Patch Staff
Posted Tue, Feb 16, 2021 at 7:29 am ET|Updated Sat, Feb 20, 2021 at 1:37 pm ET
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NEW JERSEY - New Jersey's property taxes, which are the highest in the nation, just keep going up and up. And even as state officials have sought to provide financial relief during the COVID crisis, the vast majority of taxpayers will still have to dig deeper into their pockets this year.
Patch put together a list of all New Jersey towns and their average annual property tax bills, from highest to lowest. Patch also put together the percentage tax bill increases and decreases from 2019 to 2020 (see lists below).
You may be shocked when you see how expensive it's gotten to live in your town, especially compared to other towns nearby. At the same time, maybe you'll be pleased to see that, even as the COVID crisis shut the economy down and brought a halt to revenues, property taxes actually rose at a much slower rate in 2020 than they did the year before.
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The data released this month comes from the state Department of Community Affairs. On average, the state's property taxes rose 1 percent, from $8,953 to $9,112, between 2019 and 2020. It was lower than the 2 percent cap former Gov. Chris Christie put into effect in 2011, according to the analysis.
By contrast, between 2018 and 2019, the average homeowner's tax bill rose from $8,767 to $8,953, an increase of 2.12 percent.
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The tax data tables also show that tax ratables rose 2 percent statewide since 2019, an increase above the five- and 10-year historical averages, with total ratables now at $1.118 trillion. The majority of municipalities in the state had average residential property tax decreases or increases under 2 percent.
“We’re delivering on our promise to provide property tax stability while restoring New Jersey’s fiscal standing and growing our economy,” Gov. Phil Murphy has said. “Statewide property values have grown more in the first two years of my administration than at any point since the Great Recession. That’s what we call progress.”
Here is the list of communities, their counties and their average annual tax bills, from highest to lowest (below that is a list of communities and their highest-to-lowest tax increases and decreases):
And while the average property tax bill in the state and in each municipality tells us how much New Jersey’s homeowners are really paying, it’s not the best way to measure which towns take the biggest bite.
Those with with million-dollar houses will inevitably have higher average property tax bills, which are a function of property values and property tax rates.
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New Jersey homeowners paid the highest property taxes in the nation again in 2021. The average bill was $9,284.
That provides a snapshot of what homeowners are paying statewide, but it doesn’t give the clearest picture of the true burden to taxpayers.
Affluent towns like Millburn, Demarest and Tenafly saw average bills top $21,000, but those towns include multi-million dollar homes and, more often than not, wealthy homeowners who can foot the bill.
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Thinking about a move to New Jersey? Keep in mind that homeowners in the Garden State pay some of the highest property taxes in the country. Rates in some areas are more than double the national average.
The average effective property tax rate in New Jersey is 2.42%, compared with a national average of 1.07%. When combined with relatively high statewide property values, the average property tax payment in New Jersey is over $8,400.
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 in New Jersey can help you understand how homeownership fits into your overall financial goals. Financial advisors can also help with investing and financial plans, including taxes, homeownership, retirement and more, to make sure you are preparing for the future.
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 565 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 for every county in New Jersey.
CountyMedian Home ValueMedian Annual Property Tax PaymentAverage Effective Property Tax RateAtlantic$218,300$6,0882.79%Bergen$459,200$10,000+2.18% (approx.)Burlington$247,600$6,7302.72%Camden$195,800$6,7703.46%Cape May$296,600$4,4721.51%Cumberland$162,500$4,3792.69%Essex$372,600$10,000+2.68% (approx.)Gloucester$216,700$6,7673.12%Hudson$364,100$8,3952.31%Hunterdon$402,800$9,3842.33%Mercer$284,200$7,4872.63%Middlesex$336,200$8,0502.39%Monmouth$408,400$8,4502.07%Morris$448,800$9,5952.14%Ocean$272,900$5,5992.05%Passaic$336,600$9,7222.89%Salem$185,300$5,5883.02%Somerset$420,500$9,2602.20%Sussex$266,000$7,2372.72%Union$357,300$9,7882.74%Warren$260,000$7,0582.71%
Looking to calculate your potential monthly mortgage payment? Check out our mortgage calculator.
Bergen County
A combination of high property tax rates and high home values in northeast New Jersey’s Bergen County means that the median property tax bill is more than $10,000 (the highest the U.S. Census Bureau records). That's tied for the highest figure of any county in the state, and it's almost five times the national average.
The average effective property tax rate in Bergen County is about 2.18%, which actually ranks among the lowest in the state. However, in the county’s largest municipalities, the rate is often higher.
Middlesex County
Middlesex County is part of the New York City metropolitan area. The county’s average effective property tax rate of 2.39% is slightly less than the state average. Homeowners here pay just over $8,000 annually in property taxes.
Essex County
Located in northern New Jersey, between Middlesex and Bergen counties, Essex County has one of the highest property tax rates in the state. The average effective rate in Essex County is 2.68%, and its median annual property tax payment surpasses the Census Bureau's cap of $10,000.
Hudson County
With around 670,000 residents, Hudson County is the fourth-most populous county in New Jersey. Property tax rates in Hudson County are below the state average. The countywide average effective rate is 2.31%. At that rate, the taxes on a home worth $300,000 would be $6,930 per year.
Monmouth County
Situated along the Atlantic Coast in central New Jersey, Monmouth County has the third-lowest average effective property tax rate of New Jersey’s 21 counties. That rate is just 2.07%. The state's median home value is above $400,000, which is quite high, and its median annual property tax payment is nearly $8,500.
Ocean County
If you want to buy beachfront property with relatively low property taxes in New Jersey, Ocean County may be the place. The average effective tax rate in the county is 2.05%, second-lowest in the state. Likewise, the median annual property tax payment in the county is $5,599, almost $3,000 below the state average.
Union County
Union County is located northwest of Staten Island, in the New York City metropolitan area. It is the sixth-most populous county in New Jersey. The average effective property tax rate in Union County is 2.74%, sixth-highest in the state. A homeowner paying that rate on a home worth $350,000 (about the median home value for the state) would pay $9,590 annually.
Camden County
Buying a home in Camden County? The bad news is that the county’s property tax rates are the highest in the state and one of the highest in the U.S. The county’s average effective property tax rate is 3.46%.
If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Cherry Hill can help you out.
Passaic County
This northern New Jersey county has effective property tax rates that are more than double the national average. The average effective rate in the county is 2.89%. That ranks fourth in the state, and is well above the state average.
Morris County
The median annual property taxes paid by homeowners in Morris County is $9,595, nearly four times the national median. By New Jersey standards, however, property tax rates are not especially high in Morris County. The average effective property tax rate is 2.14%, well below the state average.