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New Jersey Has The Highest Effective Property Tax Rate in the Nation

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the staff of the Ridgewood blog

Ridgewood NJ, according to the Tax Foundation , in calendar year 2019 (the most recent data available), New Jersey had the highest effective rate on owner-occupied property at 2.13 percent, followed by Illinois (1.97 percent) and New Hampshire (1.89 percent). Hawaii was at the other end of the spectrum with the lowest effective rate of 0.31 percent, followed closely by Alabama (0.37 percent) and Louisiana and Wyoming (both at 0.51 percent).

States tax real property in a variety of ways: some impose a rate or a millage—the amount of tax per thousand dollars of value—on the fair market value of the property, while others impose it on some percentage (the assessment ratio) of the market value. While values are often determined by comparable sales, jurisdictions also vary in how they calculate assessed values. While property taxes tend to be imposed at the local level, the basic framework for how they are imposed is typically set by state law.

Property taxes are tied to housing values, it makes sense that the actual dollar amounts of property taxes tend to be higher in places with higher housing prices.

5 thoughts on “New Jersey Has The Highest Effective Property Tax Rate in the Nation

  1. I’m a life long resident in Bergen County (over 50 years). Politically, I’m an independent – I’ve voted for Dems, Republicans, and even 3rd party candidates. I try to listen to each candidate and make educated decisions, but now it seems that most people are in their political bubble and refuse to consider anyone outside their party. For that reason, I really believe that many NJ residents just don’t care about the high taxes – many want to maintain the status quo in each municipality, support the special interests of their political party politicians, and only consider reducing or regionalizing services if it’s not in their community. I don’t hate NJ, but I will be moving out of state next year because I’ve been priced out. I just can’t afford to stay. I don’t see a chance of change ever coming to New Jersey till the day the State goes bankrupt and I don’t want to be here for that. If the voters don’t change and consider candidates from ALL parties (including 3rd party candidates) then nothing will ever change.

  2. I love NJ, lived here for a very long time, but the crazy property tax prices are driving more and more people out of here. A lot of folks in our locality have already moved our to states like NC where quality of life is good, and managing property for long term is affordable. I honestly see no bigger advantage anymore living in NJ anymore wasting away your hard earned money on property taxes.

  3. The problem with places that have low property taxes is they ding you on everything else using personal property taxes.
    My house in Massachusetts charges me person property tax on my furniture , excise taxes on cars, boats, motorcyles too.
    But even with those extras… its still less than New Jerkey

  4. I’d happily pay the property taxes if they eliminated all of the socialist, woke propaganda and policies.

  5. I live in Trenton and our taxes went up $2,000.00 since last year. No explanation given. If they would tax us based on comparable rates as other houses in Trenton we would pay the lowest taxes in the country due to the fact that half the houses are abandoned and boarded up. So who is paying taxes on those…well I guess we are.

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