Property Tax Experts
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For taxpayers who
may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
 | |  | |  | |  |
| New Jersey Property Tax Home Page |
| State Ranking |
| 50th |
New Jersey receives our rank as the highest paying property tax state, an honor I
am certain residents are not happy about.
New Jersey homeowners face the highest property taxes in the United States,
according to a report released by the Tax Foundation.
Of the top 10 counties ranked by median property taxes, five were in New York and five
were in New Jersey. The Tax Foundation looked at data on 775 counties from the U.S.
Census Bureau's Community Survey.
Westchester County, north of New York City, ranked No. 1 with $7,337 in median
property taxes paid. No. 2 was Nassau County on Long Island, with $7,025.
In New Jersey, Hunterdon County, Bergen County and Essex Country ranked three,
four and five, respectively.
New Jersey's real property tax is an "ad valorem tax," or a tax according to
value. All real property is assessed according to the same standard of
value except for qualified agricultural or horticultural land. The standard
measure of property value is "true value" or market value, that is, what a
willing, knowledgeable buyer would pay a willing, knowledgeable seller on
the open market at a bona fide sale as of the statutory October 1 pretax
year assessment date. The value of qualified farmland is based upon its
productive capabilities when devoted to agricultural or horticultural uses.
Property shall be assessed under general law and by uniform rules.
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%.
New Jersey's equalization program is designed to ensure that each taxing
district, as a whole, is treated equitably. Equalized valuations are used to
apportion among taxing districts within a county the costs of county
government; as a component of the formula used for the distribution of
school aid; and for the distribution of costs of school districts covering
more than one municipality. The principal part of the work of equalization
lies in determining the aggregate true value of all real estate in each of
the state's 566 taxing districts. This figure is established by a program of
assessment- sales ratio analysis. Procedures of sales data collection and
analysis have been developed by the Property Administration Branch of
the Division of Taxation but the success of the process requires the
cooperation of every county board of taxation and every local tax
assessor.
County, municipal and school budget costs determine the amount of
property tax to be paid. A town's general tax rate is calculated by dividing
the total dollar amount it needs to raise to meet local budget expenses by
the total assessed value of all its taxable property. An individual's property
taxes are then calculated by multiplying that general tax rate by the
assessed value of his particular property. Because of New Jersey's strong
"home rule" concept of government, the State does not participate in the
making of local budgets, nor does it receive any of the property taxes
collected.
Property tax payments are due annually in four installments,
February 1, May 1, August 1 and November 1.
The Homestead Credit/Rebate Program provides credits or rebates for homeowners
and tenants who occupied their principal residence in New Jersey on October 1, paid
property taxes on that dwelling either directly or through rent, and whose gross
income for the entire year does not exceed certain limits.
Only New Jersey residents who were either homeowners or tenants on October 1,
2007, are eligible for a 2007 homestead credit or rebate. Homeowners and tenants
file different applications according to their status on October 1:
Tenant: If you were a tenant on October 1, 2007, file a Form TR-1040, tenant
homestead rebate application, contained in the 2007 resident income tax return
booklet.
Homeowner: If you were a homeowner on October 1, 2007, a 2007 homestead rebate
application will be mailed to you. Homeowners do not file Form TR-1040, doing so
will delay the payment of your homestead credit or rebate. More information for
homeowners.
If you were neither a homeowner nor a tenant on October 1, 2007, you are not eligible
for a 2007 homestead credit or rebate, even if you owned a home or rented a qualified
dwelling for part of the year.
Eligible homeowners and tenants who pay property taxes, either directly or
through rent, on their principal residence in New Jersey are eligible for either a
deduction or a refundable credit on their New Jersey resident income tax return.
Homeowners and tenants may be eligible for a deduction or credit even if they are
not eligible for a homestead rebate. Qualified residents may deduct 100% of their
property taxes due and paid or $10,000, whichever is less. For tenants, 18% of rent
paid during the year is considered property taxes paid. The minimum benefit is a
refundable credit of $50.
am certain residents are not happy about.
New Jersey homeowners face the highest property taxes in the United States,
according to a report released by the Tax Foundation.
Of the top 10 counties ranked by median property taxes, five were in New York and five
were in New Jersey. The Tax Foundation looked at data on 775 counties from the U.S.
Census Bureau's Community Survey.
Westchester County, north of New York City, ranked No. 1 with $7,337 in median
property taxes paid. No. 2 was Nassau County on Long Island, with $7,025.
In New Jersey, Hunterdon County, Bergen County and Essex Country ranked three,
four and five, respectively.
New Jersey's real property tax is an "ad valorem tax," or a tax according to
value. All real property is assessed according to the same standard of
value except for qualified agricultural or horticultural land. The standard
measure of property value is "true value" or market value, that is, what a
willing, knowledgeable buyer would pay a willing, knowledgeable seller on
the open market at a bona fide sale as of the statutory October 1 pretax
year assessment date. The value of qualified farmland is based upon its
productive capabilities when devoted to agricultural or horticultural uses.
Property shall be assessed under general law and by uniform rules.
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%.
New Jersey's equalization program is designed to ensure that each taxing
district, as a whole, is treated equitably. Equalized valuations are used to
apportion among taxing districts within a county the costs of county
government; as a component of the formula used for the distribution of
school aid; and for the distribution of costs of school districts covering
more than one municipality. The principal part of the work of equalization
lies in determining the aggregate true value of all real estate in each of
the state's 566 taxing districts. This figure is established by a program of
assessment- sales ratio analysis. Procedures of sales data collection and
analysis have been developed by the Property Administration Branch of
the Division of Taxation but the success of the process requires the
cooperation of every county board of taxation and every local tax
assessor.
County, municipal and school budget costs determine the amount of
property tax to be paid. A town's general tax rate is calculated by dividing
the total dollar amount it needs to raise to meet local budget expenses by
the total assessed value of all its taxable property. An individual's property
taxes are then calculated by multiplying that general tax rate by the
assessed value of his particular property. Because of New Jersey's strong
"home rule" concept of government, the State does not participate in the
making of local budgets, nor does it receive any of the property taxes
collected.
Property tax payments are due annually in four installments,
February 1, May 1, August 1 and November 1.
The Homestead Credit/Rebate Program provides credits or rebates for homeowners
and tenants who occupied their principal residence in New Jersey on October 1, paid
property taxes on that dwelling either directly or through rent, and whose gross
income for the entire year does not exceed certain limits.
Only New Jersey residents who were either homeowners or tenants on October 1,
2007, are eligible for a 2007 homestead credit or rebate. Homeowners and tenants
file different applications according to their status on October 1:
Tenant: If you were a tenant on October 1, 2007, file a Form TR-1040, tenant
homestead rebate application, contained in the 2007 resident income tax return
booklet.
Homeowner: If you were a homeowner on October 1, 2007, a 2007 homestead rebate
application will be mailed to you. Homeowners do not file Form TR-1040, doing so
will delay the payment of your homestead credit or rebate. More information for
homeowners.
If you were neither a homeowner nor a tenant on October 1, 2007, you are not eligible
for a 2007 homestead credit or rebate, even if you owned a home or rented a qualified
dwelling for part of the year.
Eligible homeowners and tenants who pay property taxes, either directly or
through rent, on their principal residence in New Jersey are eligible for either a
deduction or a refundable credit on their New Jersey resident income tax return.
Homeowners and tenants may be eligible for a deduction or credit even if they are
not eligible for a homestead rebate. Qualified residents may deduct 100% of their
property taxes due and paid or $10,000, whichever is less. For tenants, 18% of rent
paid during the year is considered property taxes paid. The minimum benefit is a
refundable credit of $50.
