New Jersey homeowners face some of the highest property taxes in the nation, but there are several strategies they can employ to potentially reduce their tax burden:
1 File a property tax appeal:
- Challenge your property’s assessed value if you believe it’s too high compared to market value or similar properties
- Request and study your property tax card to look for discrepancies in the information about your home
- Compare your assessment to neighboring properties with similar characteristics
- File Form A-1 and Form A-1 Comp. Sale with the County Board of Taxation by April 1 or within 45 days of receiving your assessment notice
2 Take advantage of property tax relief programs:
- ANCHOR Program: Provides rebates of $450 to $1,750 for eligible homeowners and renters
- Senior Freeze Program: Reimburses eligible senior citizens and disabled persons for property tax increases
- Homestead Benefit: Offers credits on property tax bills for eligible homeowners
- Veterans’ deductions: Totally disabled veterans may be exempt from property taxes, while other veterans may qualify for a $250 credit
3 Utilize tax deductions and credits:
Property Tax Deduction/Credit: Allows homeowners to deduct up to $15,000 in property taxes paid on their state income tax return or claim a $50 refundable credit
4 Consider timing for home improvements:
Be aware that permanent additions or improvements may increase your property’s assessed value and, consequently, your tax burden
5 Participate in local government:
Stay informed about local budget decisions and participate in town meetings, as municipal and school budgets significantly impact property tax rates
6 Explore shared services:
Support initiatives for municipalities to share services, which can help reduce overall costs and potentially lower property taxes
7 Stay informed about reassessments:
Understand when your municipality conducts property reassessments, as this can affect your property’s valuation
8 Consider location carefully:
If you’re looking to move within New Jersey, research property tax rates in different municipalities, as they can vary significantly
9 Verify eligibility for special programs:
- Check if you qualify for programs aimed at seniors, disabled individuals, or veterans, which may offer additional tax relief
Remember that while these strategies can help reduce your property tax burden, New Jersey’s overall high property tax rates are largely due to the state’s reliance on this revenue source to fund local services and education. Consistently advocating for more efficient local government spending and alternative funding sources may lead to long-term property tax relief for all New Jersey homeowners.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/