New Jersey Property Tax Guide 2025

New Jersey has the highest property tax rates in the United States, with an average effective rate of 2.23%. The average NJ homeowner pays over $9,400 per year in property taxes. Here's everything you need to know.

How NJ Property Taxes Work

New Jersey property taxes are collected at the municipal level by your local tax collector. Your tax bill is calculated by multiplying your property's assessed value by the local tax rate (also called the "general tax rate").

Unlike some states where assessed value equals market value, NJ assessments can be a fraction of true market value. The equalization ratio (or "common level range") published annually by each county helps determine how your assessment compares to fair market value.

Average Property Tax Rates by County

Rates vary dramatically across NJ's 21 counties:

• Lowest: Cape May (~1.2%), Hunterdon (~1.8%), Somerset (~1.9%)
• Highest: Camden (~3.5%), Essex (~2.9%), Passaic (~2.8%)
• Middle: Bergen (~2.3%), Middlesex (~2.5%), Monmouth (~2.1%)

Browse all 21 NJ counties →

How to Appeal Your Assessment

If you believe your property is over-assessed, you can file a tax appeal with the county tax board. Here's the process:

1. Check the deadline — Appeals must be filed by April 1 (or May 1 for revaluation years)
2. Compare your assessment to similar properties using TaxLookup.ai
3. File Form A-1 (Petition of Appeal) with your county tax board
4. Gather evidence — recent comparable sales, photos, independent appraisals
5. Attend the hearing — present your case to the county tax board

Pro tip: Compare your property's assessment to neighbors on the same block. If similar homes are assessed for less, you likely have grounds for appeal.

Available Exemptions & Deductions

Senior Freeze (Property Tax Reimbursement)

Eligible seniors (65+) and disabled residents can have their property taxes frozen at a base year amount. The state reimburses the difference between your current tax bill and your base year amount. Income limits apply (currently ~$150K for married couples).

Homestead Benefit

NJ residents who owned and occupied their home on October 1 of the tax year may qualify for a credit applied directly to your tax bill. The amount varies based on income (typically $200-$1,000+).

Veterans Exemption

Honorably discharged veterans receive a $250 annual property tax deduction. Disabled veterans may qualify for a full exemption from property taxes.

Other Deductions

• Senior/Disabled Deduction: $250/year for residents 65+ or permanently disabled
• ANCHOR Program: Annual rebate for homeowners and renters (replaces old Homestead Rebate)

When Are NJ Property Taxes Due?

NJ property taxes are paid in four quarterly installments:

• February 1
• May 1
• August 1
• November 1

A 10-day grace period applies to each due date. After that, interest accrues at 8% annually (18% on amounts over $1,500).

Understanding Your Tax Bill

Your NJ property tax bill funds four main categories:

• Municipal: Local government operations (~25-35%)
• School: Public school funding (~50-65% — the biggest piece)
• County: County government operations (~15-20%)
• Special: Fire districts, open space, library taxes (~1-5%)

Last updated: February 2025. Data sourced from NJ Division of Taxation, NJ Department of Community Affairs, and county tax board records.