Property Tax Guide · New Jersey
NJ Property Taxes: What Every Buyer Must Know
New Jersey has the highest property taxes in the nation. Here's how they work, what to budget in Union County, and how to lower your bill — explained in plain English.
#1
NJ: Highest Property Taxes in the US
~2.2%
NJ Average Effective Property Tax Rate
1.8–2.1%
Typical Union County Effective Rate
April 1
Annual Deadline to File a Tax Appeal
How NJ Property Taxes Work
The formula, explained simply
The Property Tax Formula
Assessed Value × Tax Rate ÷ 100 = Annual Taxes
Example: $500,000 assessed value × 1.90 rate ÷ 100 = $9,500/year
Assessed Value
Set by your local tax assessor. In NJ, homes are assessed at 100% of market value by law — but in practice, assessments often lag behind actual market prices. A mismatch means you may be paying too much or too little.
Tax Rate
Determined annually by dividing your municipality's budget by total assessed property values. It's expressed per $100 of assessed value. Most Union County towns run 1.7–2.2 (i.e., $1.70–$2.20 per $100).
Tax Bills
NJ property taxes are paid quarterly — February, May, August, and November. Many homeowners pay via escrow (included in mortgage payment). Failing to pay triggers interest charges and potential tax sale.
Tax Liens
Unpaid property taxes become tax liens that can be sold to third parties. These liens carry 18% interest and can eventually result in a forced property sale. Always pay on time — or ensure your lender's escrow account is funded.
By Town
Estimated property taxes in Union County
Based on median home values and typical effective rates. Actual bills vary by specific property and assessed value.
Summit
Rate: ~1.9%Median Home Value
$1,350,000
Est. Annual Taxes
$23,000–$28,000
Highest home values; strong school system justifies premium
Westfield
Rate: ~1.9%Median Home Value
$875,000
Est. Annual Taxes
$15,000–$19,000
Moderate rate for top-tier schools and services
Cranford
Rate: ~1.9%Median Home Value
$615,000
Est. Annual Taxes
$10,500–$13,500
Good value — strong schools, lower absolute tax bill
Kenilworth
Rate: ~2.0%Median Home Value
$490,000
Est. Annual Taxes
$8,500–$11,000
Lowest absolute taxes in the group due to lower home values
Save Money
How to appeal your NJ property tax assessment
If your home is over-assessed relative to its market value, you can formally appeal — and thousands of NJ homeowners win reductions every year.
Get Your Assessment Card
Request your property's assessment card from the local tax assessor's office. It shows the assessed value and how your home is classified.
Compare to Market Value
Gather 3–5 recent comparable sales (within 6 months, similar size/location). If comps suggest your home is worth less than assessed, you have a case.
File by April 1st
File Form A-1 (residential) with your County Board of Taxation by April 1st. The filing fee is small and easily recouped with a successful appeal.
Attend Your Hearing
Present your comparables at a county hearing. A successful appeal reduces your assessed value — and your tax bill — retroactive to January 1st of that year.
Tax Relief
NJ property tax relief programs
Homestead Benefit Program
Senior Freeze (Property Tax Reimbursement)
Veterans' Property Tax Deduction
Disabled Veterans' Exemption
FAQs
Property tax questions answered
How do NJ property taxes work?
Your assessed value × municipal tax rate = your annual property tax. The rate is set yearly based on local budget needs. NJ averages 2.2% effective rate — the highest in the US. In Union County, most towns run 1.8–2.1%.
What are property taxes in Westfield NJ?
Roughly $15,000–$19,000/year on the ~$875K median home (rate ~1.9%). Summit runs higher ($23K–$28K/year). Cranford and Kenilworth run $8,500–$13,500/year on lower median values.
Can I appeal my NJ property tax?
Yes. File a tax appeal with your County Tax Board by April 1st. If successful, you'll receive a reduction retroactive to January 1st. You'll need recent sales comps showing your home is over-assessed. Many homeowners win meaningful reductions.
What NJ property tax relief programs exist?
Key programs: Homestead Benefit (credit for owners under $150K income), Senior Freeze (reimburses tax increases for seniors 65+), Veterans' Deduction ($250/year), and Disabled Veterans' Exemption (full exemption for 100% disabled vets).
Are NJ property taxes deductible?
Federally, yes — but only up to $10,000 SALT combined with state income taxes. On your NJ state return, the full deduction is allowed. For a $20K/year tax bill, you lose significant federal deductibility under the SALT cap.
Questions?
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