Like several states on the eastern coast, property tax laws in The Garden State are based on 100% of the fair market value but levied at the local level. New Jersey has 600+ municipalities, so assessors and collectors from their respective city or township assesses and collects property taxes. These processes are overseen by the county and administered by the state.
New Jersey homeowners must pay some of the highest property tax rates in country, according to the U.S. Census Bureau’s 2005 American Community Survey. Property tax per capita per year averages to be $1,871, which might not seem so bad because of the 600,000+ municipalities in the state. Like most states, your property taxes will depend largely on which municipality or township you live in.
Currently, there is no cap on rising property taxes in New Jersey. During election time, politicians have promised not to allow property tax rates to exceed 10%. Property tax payments are due each year in four installments, by the first day of the following months: February, May, August, and November.
New Jersey offers several tax relief programs for qualified residents. The New Jersey Homestead Property Tax Credit Act, which was signed into law on April 3, 2007, provides tax breaks for homeowners and tenants. Certain guidelines must be met, however, namely that you live in your property on October 1 of the year in which the claim is made. The amount you receive depends on your income level.
- $250,000 - receive a percentage of the first $10,000 in property taxes
- $100,000 or less - receive 20% (maximum $2,000)
- $100,001-150,000 - receive 15% (maximum $1,500)
- $150,001-$250,000 – receive 10% (maximum $1,000)
- Over $250,000 – ineligible
Read more about this act
Homeowners age 65 years or older, as well as veterans or the spouses of veterans, can receive a refund up to $250 on their property tax payments. More information, including the proper claim forms can be found here http://www.state.nj.us/treasury/taxation/index.html?relief.htm~mainFrame. To learn more about New Jersey’s other benefits for homesteaders, click here.
New Jersey Department of Taxation