Short Answer
New Jersey has the highest property taxes in the country, and South Jersey is no exception. Property tax rates vary significantly by town. Moorestown and Haddonfield have high tax rates but exceptional schools. Other towns offer more moderate rates while still providing good services. Your monthly property tax payment can be as much as your mortgage payment, so it is essential to factor taxes into your budget. Your lender will escrow property taxes and include them in your monthly payment.
Property taxes are one of the most important cost factors when buying a home in New Jersey. The state has the highest average property tax rate in the country at about 2.2% of assessed value, compared to the national average of roughly 1%. In South Jersey, rates vary significantly. For example, Moorestown's property tax rate is around 2.5%, meaning on a $500,000 home you would pay approximately $12,500 per year in property taxes. Some towns in Burlington County have lower rates, but often with different levels of services and schools. Property taxes in New Jersey fund local schools, municipal services, and county government. The assessed value of your home is determined by the municipal assessor and may not equal the purchase price. However, when you buy a home, the assessment is typically adjusted to reflect the sale price. Your monthly mortgage payment will include escrowed property taxes, meaning your lender collects 1/12 of your annual tax bill each month and pays the taxes when they are due. You can appeal your property tax assessment if you believe it is too high, but the process can take time and results vary.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Property taxes are the number one concern for many of my buyers, and for good reason. They significantly affect your monthly housing cost. I will always show you the annual property taxes for every home we look at, and I will help you compare the tax burden across different towns. If property taxes worry you, let us focus on towns where you get the best value for your tax dollar. Every town is different, and I know which ones offer the best balance.
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