Updated: Apr 11, 2024
By Barbara A. Preston | Posted April 11, 2024
Montgomery Township has the highest property taxes in Somerset County, and ranks among the highest in the state of New Jersey, according to a new report from the NJ Department of Community Affairs (DCA). The average New Jersey property-tax bill is about $9,800 per household per year.
Data from this chart is from a State of New Jersey Department of Community Affairs report titled “2023 Property Tax Information.“
The average Montgomery resident paid $17,067 in property taxes in 2023 — this includes $11,964 for the school district, $2,500 for the municipal expenses (police, township employees, roads, library tax, and open space tax), and $2,603 for Somerset County (parks, library, roads, social services).
It is no secret that the overwhelming percentage of property taxes goes to fund public schools in New Jersey. “Efforts by former Gov. Chris Christie, whose two terms in office ended in early 2018, to take on the issue of high property taxes included the 2011 adoption of a 2% cap on annual property-levy increases,” according to NJ Spotlight News. “But that cap provides for several exceptions, which allow year-over-year increases of more than 2% to occur. They include for debt payments, funding responses to large-scale emergencies and covering costs related to pension and health benefits for public employees.”
Now, in 2024, New Jersey has the highest real estate tax rate in the nation, according to the personal finance website WalletHub, and to Rocket Mortgage.
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New Jersey is the most expensive state in the nation for property taxes according to a report released by WalletHub on February 20. The average American household spends $2,869 on property taxes for their homes each year, according to the U.S. Census Bureau. WalletHub ranked all 50 states and the District of Columbia by their real estate tax rates − New Jersey homeowners on average pay $9,345 in property taxes annually.
A sampling of property taxes paid in each state on a home priced at state median value: Alabama ($701); West Virginia ($809); Delaware ($1,674); North Carolina ($1,724); Maine ($2,855); Pennsylvania ($3,187); California ($4,694); New York ($6,303); New Hampshire ($6,372); Connecticut ($6,484); and New Jersey ($9,345).
Property taxes can be a major consideration when deciding on a home, especially in areas like Montgomery where they’re notably high. For homeowners who feel burdened by these costs, Cash Home Buyer Guide can be a valuable resource, offering insights into options for selling quickly and avoiding lengthy processes. Balancing tax obligations with homeownership goals can be challenging, but with the right information, it’s easier to make decisions that align with your financial needs.