What is the property tax rate in New Jersey?
New Jersey’s average effective property tax rate is 1.88%, the highest of the states we cover and tied with Illinois, per the Tax Foundation’s Facts & Figures 2026, which divides property taxes paid by owner-occupied home values from the 2024 American Community Survey. On a $500,000 home that works out to about $9,400 a year.
For an apartment owner, the statewide figure is only a starting point. New Jersey property tax is levied by each of its municipalities, and the rate in your town, together with how close your assessment sits to market value, decides the bill. The next sections show how to read the official rates.
General tax rate vs effective tax rate in NJ
New Jersey towns publish a general tax rate per $100 of assessed value, and the Division of Taxation also publishes an effective tax rate that adjusts for how far assessments are from market value. The general rate is what appears on your bill. The effective rate is the one you can compare between towns.
The general rate combines the county levy, the municipal levy, the school district levy and any fire or special district charges. Because towns revalue at different times, two towns with the same general rate can tax a $2 million building very differently. Absecon in Atlantic County shows the gap: in 2025 its general rate was 3.517 per $100 of assessed value, but its effective rate was 2.410 per $100 of market value, because its assessments ran below market.
To estimate a bill, multiply the market value by the effective rate. To check an actual bill, multiply the assessed value on the tax record by the general rate.
New Jersey property tax rates by town (2025)
The Division of Taxation reports effective rates for each municipality, not averages for counties, so the table below lists selected towns rather than a county ranking. All figures are 2025 rates per $100 from the Division’s General Tax Rates report. They are a sample of high, low and large-city rates, not a full ranking of all municipalities.
- Trenton’s 3.468 effective rate is about ten times Avalon’s 0.348, the widest gap in this sample.
- All four Cape May County shore towns in the sample have effective rates under 0.65%.
- Hoboken’s effective rate is about 1.07%, a little more than half of nearby Jersey City’s 1.85%.
| Municipality | County | General rate (per $100 assessed) | Effective rate (per $100 market) |
|---|---|---|---|
| Trenton | Mercer | 5.890 | 3.468 |
| Irvington | Essex | 2.587 | 2.913 |
| East Orange | Essex | 3.241 | 2.886 |
| Cherry Hill | Camden | 4.348 | 2.598 |
| Hackensack | Bergen | 3.209 | 2.527 |
| Paterson | Passaic | 5.335 | 2.421 |
| Camden | Camden | 3.687 | 2.329 |
| Elizabeth | Union | 2.017 | 2.113 |
| New Brunswick | Middlesex | 2.688 | 2.092 |
| Jersey City | Hudson | 2.335 | 1.847 |
| Newark | Essex | 3.999 | 1.845 |
| Hoboken | Hudson | 1.805 | 1.070 |
| Ocean City | Cape May | 1.160 | 0.640 |
| Sea Isle City | Cape May | 0.905 | 0.453 |
| Stone Harbor | Cape May | 0.776 | 0.413 |
| Avalon | Cape May | 0.608 | 0.348 |
How assessed value is set in New Jersey
Every municipality has a tax assessor who values each property, and assessments are supposed to equal market value right after a revaluation. Between revaluations, market prices move and assessments do not, so most towns end up assessing below market.
To keep the county and school levies fair across towns, the Division of Taxation sets an average assessment ratio for each district each year. That ratio converts assessed value to equalized value. It also sets the Common Level Range, which is the average ratio plus or minus 15%. If your assessment divided by market value falls inside that range, the assessment generally stands, even if it does not match market exactly.
Newark is a good illustration. Its 2025 general rate of 3.999 and effective rate of 1.845 imply that assessments there averaged about 46% of market value.
Does a sale trigger reassessment in New Jersey?
No. Selling a building does not reset its assessment in New Jersey. The assessed value changes only when the town does a revaluation or reassessment, or when the assessor adds an added or omitted assessment for new construction or improvements.
The price you get still matters. Sale prices feed the Division’s ratio studies and the next revaluation, and a buyer’s lender will underwrite the tax bill the building is likely to carry after the town catches up, not just the current one.
Is there a cap on property taxes in New Jersey?
New Jersey caps the levy, not the assessment. The 2% property tax levy cap in P.L.2010, c.44 limits how fast a municipality, county or school district can grow its total tax levy each year, with statutory exclusions.
There is no cap on any one property’s assessment or bill. After a revaluation, a building that was under-assessed can see a much larger increase than 2%, while the town’s total levy stays within the cap.
How to appeal your property tax assessment in NJ
To appeal, you file with the County Board of Taxation by April 1 of the tax year, or May 1 if your town had a revaluation or reassessment that year. The appeal must show that the assessment fails the market value test or falls outside the Common Level Range.
- If your building is assessed over $1,000,000, you can skip the County Board and file directly with the Tax Court, usually with an appraisal.
- Bring the rent roll, operating statements and comparable sales. For an income property, the building’s net operating income is usually the core of the value argument.
| Situation | Deadline | Where to file |
|---|---|---|
| Most municipalities | April 1 | County Board of Taxation |
| Town with a revaluation or reassessment that year | May 1 | County Board of Taxation |
| Burlington, Gloucester and Monmouth counties | January 15 (alternative calendar) | County Board of Taxation |
| Property assessed over $1,000,000 | Same deadline | County Board or directly to the Tax Court |
| Appeal of a County Board judgment | Within 45 days of the judgment | New Jersey Tax Court |
Exemptions and abatements for apartment buildings
New Jersey has no homestead-style exemption for investor-owned apartments, but towns can grant abatements and payment-in-lieu-of-taxes deals to new projects. Both of the main programs are granted by municipal ordinance.
- Long Term Tax Exemption Law (N.J.S.A. 40A:20): an urban renewal entity pays an annual service charge, a PILOT, instead of conventional taxes on the improvements.
- Five-Year Exemption and Abatement Law (N.J.S.A. 40A:21): exemptions or abatements for new construction and improvements in areas the town designates.
- ANCHOR: state property tax relief paid to homeowners and renters, including apartment tenants. It goes to the resident, not the building owner.
- Stay NJ and the senior freeze are for owner-occupants and do not apply to investor-owned apartments.
Worked example: property tax on a $2 million apartment building
Take a 20-unit building worth $2,000,000. At the statewide average of 1.88%, the yearly tax is about $37,600, or $1,880 per unit. Using 2025 effective rates, the same building would pay about $36,900 in Newark (1.845%), $50,540 in Hackensack (2.527%) and $12,800 in Ocean City (0.640%). Location changes the bill by almost four times.
Now look at what a buyer underwrites. Say the building’s current assessment is low for its town and the bill is $30,000, while a building assessed at the town average would pay $36,900. A sale alone does not change the bill. But if the town revalues, the tax can rise by $6,900. That cuts net operating income by $6,900 a year, and at a 6% cap rate, about $115,000 of value. Expect a buyer to price that in, especially in a town whose last revaluation is many years old. The property tax calculator lets you test your own town’s rate.
How to estimate the tax before you buy or sell
The quickest way to estimate a New Jersey tax bill is to multiply the price by the town’s effective rate, then check it against the actual assessment. The two numbers often differ, and the gap tells you how exposed the building is to the next revaluation.
- Look up the assessed value on the municipal tax record and multiply it by the general rate per $100. That is the current bill.
- Multiply the expected sale price by the effective rate. That is roughly what a building assessed at the town average would pay.
- If the second number is much higher, the building is under-assessed for its town and a revaluation could raise the bill.
- Ask the assessor when the last revaluation took place and whether one is scheduled.
- If the building has a PILOT or five-year abatement, find the end date in the ordinance and the agreement. Conventional taxes start when it ends.
Property tax and rent control together
New Jersey has no statewide rent control, but municipalities may adopt their own rent control ordinances, enforced by local rent boards. In a rent-controlled town, a higher tax bill may not be easy to recover through rent, so read the local ordinance before you budget for an increase. Newly built multiple dwellings are exempt from local rent control for up to 30 years after completion (the term of the initial mortgage, if shorter). Our New Jersey landlord-tenant law guide covers rent control in more detail.
Selling a high-tax building in New Jersey
Skyline buys apartment buildings with five or more units in New Jersey, including buildings in towns where a revaluation is coming or a tax appeal is pending. We buy directly, close on your timeline, and can work inside 1031 deadlines. We underwrite the tax bill ourselves, so a pending appeal does not have to hold up the sale.
