Mercer Co. Tax Rate Could Drop. Here's What's In The Proposed $430M Budget

MERCER COUNTY, NJ — Mercer County property owners would see a slight decrease in the county tax rate under a proposed $430 million budget presented Thursday, even as the county absorbs rising healthcare costs and an expected loss of $6.5 million in federal funding.

County Executive Dan Benson introduced the 2026 budget to the Board of County Commissioners, proposing an overall county tax rate of 51 cents per $100 of assessed property value, down marginally from last year.

For most New Jersey homeowners, a property tax bill is made up of three separate levies — municipal, school and county — each set independently by different governing bodies. The county portion reflects only what Mercer County government collects to fund its own services.

Benson cautioned that while the county rate is trending down, it remains too soon to determine what effect that change will have on residents' total tax bills, which will also be shaped by what their municipality and local school district ultimately levy this year.

The proposed budget represents an increase of just over 6 percent from 2025. Three categories of spending drove more than 73 percent of that increase: financial commitments to Mercer County Community College and the Special Services School District; costs for public safety agencies including the Prosecutor's Office, Sheriff's Office and Corrections Center; and rising employee healthcare expenses.

To slow the growth of healthcare costs, the county negotiated with employee unions to leave the State Health Benefits Plan. The transition is projected to reduce the anticipated increase in active employee healthcare costs from roughly 31 percent over the prior year to approximately 17.5 percent, according to Benson.

On the federal funding side, Benson outlined several areas where Mercer County faces reduced revenue, including cuts to supportive housing funds, public health programs, SNAP, Medicaid and new administrative burdens tied to employment verification requirements.

"As you can see, we’ve done a lot and I’m proud of what we’ve accomplished. But I’m not going to sugarcoat it. There are a lot of challenges that we still have to navigate. Healthcare costs continue to rise. This Federal government continues to be chaotic and unpredictable. For too many families everything is still too expensive and getting more expensive by the day,” Benson said.

He said the state would help offset some of those impacts, but added that counties cannot rely entirely on Trenton to fill the gap.

The proposed budget also includes capital investments. Benson highlighted planned renovations at the Trenton Thunder Ballpark and the CURE Insurance Arena, which is set to host a new professional hockey franchise, the Trenton Ironhawks. The county has also preserved more than 50 acres of open space acquired from Rider University.

“Across the country, local governments are grappling with an increasingly unaffordable world, rising healthcare costs, growing demands on public services, and the continued chaos in Washington," Benson said. “But here in Mercer County, we’ve never let challenges slow us down. We’re continuing to move forward with the key investments that will put us in a strong position for many years to come.”

Among recent expenditures from American Rescue Plan Act and Community Development Block Grant funds, Benson cited more than $5 million in upgrades to several county libraries, the purchase of wheelchair-accessible senior vans for East Windsor, Ewing, Trenton and West Windsor, rehabilitation of the South Ward and Reading senior centers in Trenton and the creation of a new Office of Food Security.

Benson also pointed to an improved bond rating outlook from Moody's as evidence of progress in stabilizing county finances, noting that a better credit rating reduces borrowing costs for infrastructure projects.

“The County’s new management team has worked in recent years to improve financial operations and the rebalancing of its budget to be more sustainable,” Benson said. “When our credit outlook improves, we can borrow money at a lower rate when we invest in infrastructure and other major projects, which saves taxpayers money in the long run.”

Board of Commissioners Chair Terrance Stokes said the board looks forward to reviewing the proposal and working with the county executive to address community needs while maintaining fiscal discipline.

Vice Chair Cathleen Lewis echoed that commitment, saying commissioners would continue working to advance shared priorities and responsibly manage taxpayer dollars.

The Board of County Commissioners will now review the proposed budget before any final adoption.

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