Property taxes represent a significant expense for homeowners in New Jersey, especially in certain communities. If you're new to the state or are thinking about purchasing your first home, it's important to be prepared. Here's what you need to know about property taxes in Central New Jersey.
When Are Taxes Assessed?
Taxes are assessed every year, based on the value of the property on the first day of October the year before the taxes are due. Property tax installments are due on the first day of February, May, August and November. Tax levies vary by district. Rates may change depending on the annual budget for that area. Once the rates are set, the assessor sends a bill to the homeowner for the amount due.
How Much Are Taxes?
Some communities in Central New Jersey have some of the highest property taxes in the state. If you're trying to avoid a massive tax bill four times per year, the following communities might not be for you:
- Summit, Union County, average tax bill for 2017: $17,930
- Westfield, Union County, average tax bill for 2017: $16,725
- Deal, Monmouth County, average tax bill for 2017: $16,304
- Loch Arbor, Monmouth County, average tax bill for 2017: $16,874
- Rumson, Monmouth County, average tax bill for 2017: $19,551
- Mantoloking, Ocean County, average tax bill for 2017: $17,423
- Bay Head Borough, Ocean County, average tax bill for 2017: $12,565
- Princeton, Mercer County, average tax bill for 2017: $18,894
Of course, these numbers are not representative of property taxes in a typical New Jersey town. A typical home in New Jersey was priced a little over $320,000 last year. On average, tax payers paid about $8,767 in property taxes in 2018.
Tips for Paying Property Taxes
If you're ready to purchase (or build) a home, there are ways to make paying property taxes more affordable and easy to manage.
Choose Your Community Wisely
Every community in New Jersey is different. Knowing the property tax requirement of the home where you would like to buy can help you decide where to build or purchase a home.
Do research before deciding where to live. How much were property taxes last year? And the year before that? Are the property taxes trending up or down each year? Find out the answers to these questions before deciding where to live.
Find Out How Your Tax Bill Will be Paid
Some lenders charge money for the tax bill with the mortgage, and when the property taxes are due, the lender pays the bill. Find out whether your lender will require you to pay property taxes on your own, or if your lender will be stowing away money for your property taxes every month.
Save Money to Pay Quarterly Bills
If you are expected to pay your property taxes without help from your lender, find out how much money you'll have to save each month to pay the bill. Set up a savings account to keep this money separate from your other money, so you'll have the money you need when the bill comes due.
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