What This Means for NJ Homeowners
By Counsellors Title Agency, Toms River, NJ
As a leading title agency serving New Jersey homeowners for decades, Counsellors Title Agency has witnessed the evolving landscape of property ownership in our state. The latest development in New Jersey’s property tax saga represents a significant milestone that directly impacts our clients and communities.
A New Threshold Crossed
New Jersey’s property taxes, long recognized as the nation’s highest, have now crossed a psychological and financial barrier. For the first time in history, the average homeowner’s property tax bill in the Garden State has exceeded $10,000 annually, according to recently released data from the state Department of Community Affairs.
The precise figure—$10,095—represents a 3% increase (approximately $300) from 2023’s average of $9,803. While this increase aligns with current inflation rates reported by the U.S. Bureau of Labor Statistics, it nevertheless places additional pressure on homeowners already navigating a challenging economic environment.
County-by-County Impact
As title professionals working across the state, we at Counsellors Title Agency have observed firsthand how property tax burdens vary significantly by county. The new data reveals that more than 40% of New Jersey’s 21 counties now have average property tax bills exceeding $10,000.
Essex County continues to lead with the highest average property taxes at $13,900, closely followed by Bergen County at $13,329. Seven additional counties reported average bills over $10,000:
- Morris: $11,813
- Union: $11,528
- Somerset: $11,428
- Hunterdon: $11,346
- Passaic: $11,278
- Monmouth: $11,087
- Hudson: $10,150
Ocean County, where Counsellors Title is headquartered in located in Toms River, continues to offer relatively more affordable property tax rates compared to northern counties, though still higher than Cumberland County ($4,901) and Cape May County ($6,454), which reported the lowest average bills.
Understanding Property Tax Allocation
As we explain to our clients during the closing process, property taxes fund essential local services. These taxes are levied at the local level by county governments, municipalities, and school districts to finance infrastructure, education, and other community services.
While collected locally, state-level decisions significantly impact these taxes. State aid to municipalities and schools, along with various relief programs, can help reduce the burden on local governments and, consequently, on homeowners.
Relief Programs and Future Outlook
For prospective and current homeowners concerned about these rising costs, we at Counsellors Title Agency regularly highlight available relief programs. Governor Phil Murphy’s recently proposed $58.1 billion state budget includes over $3 billion allocated to property tax relief initiatives, including:
- The ANCHOR program, offering credits up to $1,500
- The new Stay NJ program, designed to reduce property taxes by half for seniors 65 and older earning less than $500,000 annually
When applied to the average property tax bill, these programs can provide meaningful relief. For instance, a homeowner with the average $10,095 bill who receives the maximum non-senior ANCHOR benefit would effectively pay $8,595—less than the average bill in 2018.
What This Means for New Jersey Homebuyers
At Counsellors Title Agency, we believe informed homebuyers make better decisions. As you consider property purchases in New Jersey, we recommend:
- Researching property tax histories for any potential purchase
- Factoring tax relief programs into your affordability calculations
- Planning for potential increases in future years
- Consulting with tax professionals about potential deductions and strategies
As the state enters an election year with term-limited Governor Murphy departing office, property taxes will undoubtedly remain a central issue in political discussions. We’re committed to helping our clients navigate these changes while ensuring smooth, secure property transactions throughout New Jersey.
For more information about title services or to discuss how property taxes might affect your real estate transaction, visit www.counsellorstitle.net or contact our Toms River office at 732.914.1400.