Near 10% Municipal Tax Hike Proposed In Parsippany Budget

PARSIPPANY, NJ — The first budget introduced under the new administration in Parsippany is proposing a near 10 percent tax hike to residents.

On Tuesday, Parsippany officials unveiled their tentative budget for the 2026-27 fiscal year, which has been increased by roughly 6.75 percent, or $6.35 million.

Among the increases is the following:

• $130K Increase in Department Operating Budgets
• $2M increase in budget corrections: “Changes to how we will budget our Capital Improvement Fund and Accumulated Absences Costs.”
• $2M increase to Salaries: “5.75% increase from 2025, accounting for roughly $1 Million in new positions.”
• $2.5M increase to set costs: “5.22% increase, which is 0.26% over the 7-year average of roughly 4.96% annually.”

With the increases comes a proposed tax hike of 9.5 percent. For comparison, last year’s budget showed a municipal tax increase of 2.2 percent.

Town officials cited a number of challenges that prompted the hefty tax hike, including a $2 million increase to health insurance rates, a $1 million increase to accumulated absences, and a $261,000 revenue reduction in the reserve for debt service.

Officials added that a primary goal of this year’s budget is to “correct the mistakes of the past.”

Some budgeted projects town officials say residents have to look forward to include road resurfacing and traffic light upgrades, collaboration between the township and Board of Education, and other improvements.

“I know (9.5%) is a big number, but we’re going to do everything we can to make sure that the services that you’re receiving within this township are quality services,” said Business Administrator Marc Seemon. “We’re going to correct the financial mistakes of the past. That is my goal, that is our goal.”

Officials added that they’re confident that Parsippany will be in a better position next year in terms of budgeting and tax rates.

On April 14, departments with the highest increases will present their budgets separately. This will include the police, water, sewer, and public works departments.

There will be several meetings throughout April during which residents will be able to ask questions on the 2026-27 budget.

Click here to view a user-friendly version of the proposed budget.