Nutley In ‘Excellent Financial Shape’ Despite Tax Hike Proposal, Official Says

NUTLEY, NJ — Nutley town officials took another step towards finalizing the 2026 municipal budget this week. The spending plan would come with a $340 tax increase for the average homeowner if it crosses the finish line intact.

Details about the latest budget were released at the Nutley Board of Commissioners meeting on Tuesday. Watch meeting footage here. View the town’s budget presentation here.

The township finance department shared additional information on Friday.

For the average Nutley homeowner with a property valued at $494,786, the proposed budget would mean a $340 tax increase, including $322 for municipal purposes and $18 for the library.

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According to the town’s finance department, the most significant factor driving the cost increase for the municipality is health benefit costs, a trend impacting the entire state. The medical health insurance bill for the township increased by $3,015,102. Meanwhile, contractual salary increases account for an additional $977,000, which includes $877,000 allocated to public safety.

Other details about the proposed spending plan include:

• Total municipal budget (five departments) – $67,661,822
• Amount to be raised through property taxes, including the library – $49,057,558
• Total municipal increase – $3,329,337 or 7.3 percent (includes $181,000 for the Nutley Public Library)

Despite the proposed tax hike, Nutley “continues to be in excellent financial shape,” including an Aa1 bond rating from S&P: the equivalent of a personal credit score over 800, Department of Revenue and Finance Commissioner Thomas Evans said.

Nutley’s current debt has decreased year-over-year by approximately $3 million, representing only 11 percent of its total borrowing capacity of $195 million. The township is able to pay its bills without temporary financing and maximizes the use of grant dollars to minimize debt, Evans said.

“Our core obligation remains the health, welfare and safety of the community,” Evans added.

The municipal budget is scheduled for a public hearing pending amendments, with adoption anticipated at the first meeting in June.

TAXES IN NUTLEY

Property taxes in New Jersey are mainly made up of three parts: school, municipal and county.

According to figures from the Nutley town finance department, the board of education is projecting a $410 tax increase and the county is projecting a $50 tax increase.

In 2025, the average Nutley resident paid $13,314 in property taxes on a home valued at $493,362 (not including credits and deductions). That broke down as follows: school (51.2%), municipal (34.1%) and county (14.7%).

Residents with questions about the budget can email their questions to the CFO's office at Treasureroffice@nutleynj.org

• Related: Nutley School Board Holds Budget Hearing: See Tax Impact For Homeowners
• Related: Property Taxes Keep Rising In Belleville: See Latest 5-Year Breakdown

SEWER UTILITY

The sewer utility operates as a separate legal entity and is not included in the property tax levy.

According to township officials, the primary cost drivers for the utility relate to sewer treatment and water provisions. External utility cost increases include the Passaic Valley Sewerage Commission treatment bill (7.2 percent) and water provider costs (4.3 percent), which account for most of the cost increase.

Internally-managed costs for salaries, benefits, other expenses and debt service are “substantially flat” at 0.9 percent, town officials said.

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