Montclair School, Town Budgets Get Green Light: See Tax Impacts

MONTCLAIR, NJ — Montclair saw two important, budget-related votes happen this week – each of which will result in a tax hike for local homeowners.

The Montclair Township Council voted in favor of the 2026 municipal budget on Tuesday. The budget will come with a $178 increase for a homeowner with a property assessed at $641,700.

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Meanwhile, the Montclair Board of Education approved the 2026-2027 school budget at their meeting on Wednesday. The budget will come with an $851 increase for a homeowner with a property assessed at $639,600.

Property taxes in New Jersey are mainly made up of three parts: school, municipal and county. In 2025, the average Montclair resident paid $22,487 in property taxes on a home valued at $639,628 (not including credits and deductions).

>> Related: Average Montclair Property Tax Tops $22K: See Latest 5-Year Breakdown

Here are some additional details about each spending plan.

TOWN BUDGET

The Montclair Township Council held a public hearing for the 2026 municipal budget on May 5. The council unanimously voted in favor of the spending plan.

View the user-friendly budget here.

The tax levy will increase by 2.97 percent. The average residential taxpayer will see an increase of about $14 per month to the municipal portion of their taxes, according to figures presented at the meeting.

Significant cost drivers included a $2.55 million hike to employee health insurance – a 33 percent increase. District administrators previously shared the following details about other large cost drivers:

Township manager Stephen Marks said the total number of full-time municipal employees was reduced from 377 to 362 this year. That number will be further reduced by either “attrition” or a “reduction in force” if needed, he said.

Watch video footage from the May 5 council meeting here, or view it below (article continues underneath):

SCHOOL BUDGET

The Montclair Board of Education held a public hearing on the 2026 municipal budget on May 5. The school board unanimously voted in favor of the spending plan.

View the user-friendly budget here.

The spending plan will increase the local tax levy by about 3.9 percent. A homeowner with a property assessed at $639,000 will pay $851 more for the school portion of their taxes. This tax increase is separate from the town’s March 10 referendum, which approved a one-time, $12.6 million tax hike and rejected a permanent $5 million per year increase.

• Related: Montclair School Will Be Turned Into Pre-K Facility Due To Budget Cuts

According to district administrators, 36 jobs were cut in order to balance the school budget, but 20 of the impacted employees were reassigned to vacant positions that were left through attrition such as resignations or retirements.

The staff reductions are separate from another round of cuts that took place last year, which saw the loss of nearly 100 jobs.

Watch video footage from the May 5 council meeting here, or view it below:

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