N.J. property taxes break another record. Many pay more than $10K. (2024)

New Jersey’s average property taxes for 2023 were the highest yet in a state that already socks residents with some of the most expensive bills in the nation.

The average property tax bill for homeowners in the Garden State hit a record $9,803, according to new data posted by the state Department of Community Affairs. That’s up from a previous record high of $9,490 in 2022.

The 3% increase is roughly in line with the latest inflation rates from the federal Bureau of Labor Statistics. However, the $313 increase is the highest highest year-to-year since Gov. Phil Murphy took office in 2018.

The current trend indicates that sooner rather than later the majority of homeowners in the Garden State will be paying more than $10,000 in property taxes.

Nearly a third of the state’s counties have already passed that $10,000 mark: Bergen, Essex, Hunterdon, Monmouth, Morris, Passaic, Somerset, and Union.

Essex County homeowners paid an average of $13,448, the highest in the state. The average for Bergen and Union residences topped $12,000. Homeowners in Cumberland, New Jersey’s poorest county, paid the least, an average of 4,840, according to the data.

New Jersey property taxes were already sky-high compared to other states. In 2022, the median property taxes paid in the Garden State were tops in the nation.

The state’s data does not factor in property tax relief programs that state leaders put in place — such as ANCHOR, which paid more than $2.1 billion to homeowners and renters for the 2020 benefit year, and the Senior Freeze, which reimburses eligible homeowners for property tax increases.

ANCHOR allows eligible homeowners and renters in the state to apply for rebates of $450 to $1,750. Senior Freeze reimburses senior citizens and disabled persons.

To qualify for Senior Freeze, your 2022 income must be $150,000 or less and 2023 income must be $163,050 or less, according to state info. The application deadline is Oct. 31, 2024.

County, municipal and school budget costs determine the amount of property tax to be paid. The local budget needs of the town and its taxable property also play a role.

Property taxes can vary by town. The rate a municipality charges and how much the town says a home is worth can determine a homeowners bill.

For some municipalities, the value of the home is based on an open market valuation and in other instances the length of time since the last reevaluation becomes the driving factor. The latter has encountered criticism for potentially leading to lower assessed values and what can sometimes be higher tax rates.

Property taxes have gone up under both Republican and Democratic governors.

In addition to installing property tax relief programs, Murphy, a Democrat, has said sharing services among municipalities and increasing school aid, which makes up the largest portion of property taxes, helps lessen the burden.

NJ Advance Media staff writer Karin Price Mueller contributed to this report.

Jelani Gibson is a staff writer for NJ Advance Media and content lead for NJ Cannabis Insider. He may be reached at [email protected]. Follow him on X at @jelanigibson1 and on LinkedIn.