Property Tax (2024)

FAQs

Why is New Jersey property tax so high? ›

High education costs in New Jersey are a major factor driving its property taxes, while the tax burden is much lower in Hawaii because property taxes there are mostly paid by tourism. Taxation policies vary so widely that a person might pay $8,000 more in one state versus another for a home of the same price.

How is property taxed in New Jersey? Property tax in New Jersey is a local tax that's based on the value of your home, which is assessed annually by assessors in each municipality. The average property tax rate is 2.23 percent of the assessed value of your home, which is the highest rate in the country.

The tax levy is divided by the total assessed value of all taxable property within the municipality-or the tax base - to determine the general tax rate. The general tax rate is then applied to the assessed value of each individual parcel of property to determine the property owner's tax liability.

You (or your spouse/civil union partner) were: 65 or older as of December 31, 2022; or. Actually receiving federal Social Security disability benefit payments (not benefit payments received on behalf of someone else) on or before December 31, 2022, and on or before December 31, 2023.

States with the heaviest tax burden:

Maine: 11.14% Vermont: 10.28% Connecticut: 9.83% New Jersey: 9.76%

Hawaii is the state with the lowest real estate property tax rate, while New Jersey is the state with the highest, according to personal finance site WalletHub. In a report released Feb. 20, WalletHub determined the states with the highest and lowest property taxes.

Who decides property taxes in NJ? ›

Real property is required to be assessed at some percentage of true value established by the county board of taxation in each county. All 21 counties in New Jersey have chosen 100%.

Property tax bills are mailed once a year in July and contain four quarterly payments. Taxes are due February 1, May 1, August 1, and November 1.

If you're delinquent in paying your New Jersey property taxes, you might eventually lose your home. If your New Jersey property taxes are delinquent, the collector (on behalf of the municipality) can sell your home at a public auction, subject to your right of redemption. (N.J. Stat.

NJ Taxation

The Senior Freeze Program reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence (main home). To qualify, you must meet all the eligibility requirements for each year from the base year through the application year.

Under Stay NJ, eligible seniors with a gross income under $500,000 will receive a credit of 50 percent on the annual property tax bill for their principal residence, up to $6,500.

Hawaii is the state with the lowest real estate property tax rate, while New Jersey is the state with the highest, according to personal finance site WalletHub.

Key Takeaways

New Jersey has the highest property tax rate at 2.47%, followed by Illinois, Connecticut, New Hampshire, and Vermont. There are 14 counties with an estimated median property tax above $10,000 across California, New York, New Jersey and Virginia.

Still, thanks to the folks at WalletHub you can have an idea of the difference. The median Pennsylvania property tax (statewide) is approximately $2,852. The median New Jersey property tax (statewide) is approximately $8,362. Unlike New Jersey, retirement income is not taxed in Pennsylvania.

NJ Taxation

The Senior Freeze Program reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence (main home). To qualify, you must meet all the eligibility requirements for each year from the base year through the application year.