Average Property Tax Bill In Princeton Among Highest In NJ, Says Data

PRINCETON, NJ - Property taxes are on the rise in many towns, and Princeton homeowners are among the top 10 taxpayers in the state.

Earlier this week, the New Jersey Department of Community Affairs (NJDCA) published its latest tax tables, which are based on 2022 data.

Patch put together a list of the average property tax bills for each town in New Jersey.

According to data from NJDCA, Princeton homeowners have the 10th highest average property tax bill in the state.

For a property valued at $844,793, Princeton residents paid $20,539 in average property taxes in 2022. That’s an increase of $29 from 2021, where the average property tax bill was $20,510 for a home valued at $841,249. More: See The Average Property Tax Bill In Princeton

Property taxes in New Jersey are made up of three parts — school, municipal and county. Here's how that broke down in Princeton last year:

• County: 29.2 percent
• School: 49.3 percent
• Municipal: 21.5 percent

Here are 10 average tax bill-paying towns in New Jersey for 2022, according to NJDCA:

1. Tavistock Borough, Camden - $29,996
2. Millburn Township, Essex - $24,623
3. Demarest Borough, Bergen - $22,636
4. Tenafly Borough, Bergen - $22,411
5. Rumson Borough, Monmouth - $22,093
6. Glen Ridge Borough, Essex - $22,059
7. Mountain Lakes Borough, Morris - $21,861
8. Alpine Borough, Bergen - $21,169
9. Montclair Township, Essex - $20,775
10. Princeton, Mercer - $20,539

Now let’s look at other townships in the county. While Princeton has the highest average property tax, Trenton has the least at $3,431. But it is important to note that the average residential property in Trenton is valued at $62,863, whereas in Princeton, an average home is valued at $844,793.

Here’s how Princeton compares to other Mercer County towns:

• West Windsor Township, Mercer - $15,067
• Hopewell Township, Mercer - $13,978
• Hopewell Borough, Mercer - $12,782
• Pennington Borough, Mercer - $13,514
• Robbinsville Township, Mercer - $11,349
• Hightstown Borough, Mercer - $10,084
• East Windsor Township, Mercer - $8,586
• Lawrence Township, Mercer - $8,504
• Ewing Township, Mercer - $7,280
• Hamilton Township, Mercer - $7,022
• Trenton City, Mercer - $3,431

PAYING PROPERTY TAXES IN NEW JERSEY

Property taxes are always a huge talking point in town. But here are three things to keep in mind about property taxes in New Jersey:

Home Values: It’s easy to make comparisons between towns based on their average tax bills. But if you take a look at a town’s “effective tax rate” – the amount of property tax paid relative to a home’s value – a different story often emerges. Analyzing the data in a recent Patch article in Essex County last year, a community member noticed a startling pattern: the wealthiest communities almost always had the lowest effective tax rates. More: Many Wealthier Towns Pay Lower Property Tax Rates In This NJ County

Bang For The Buck: Some experts have pointed out that a high tax bill doesn't necessarily mean a homeowner is getting ripped off – it depends on what you get for the money. “While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, it's worth noting that property taxes are largely rooted in the ‘benefit principle’ of government finance – the people paying the bills are most often the ones benefiting from the services,” researchers from The Tax Foundation recently wrote.

Blaming Politics: Taxes and home values have gone up steadily throughout the state over the past decade, regardless of what political party is in the governor's seat. When former Republican Gov. Chris Christie and the state Legislature reached a historic deal for a 2 percent cap in 2011, the average property tax bill in New Jersey was at $7,759 for a home valued at $299,014. By the time Christie left office, the average property tax payment had risen by 13 percent. It has continued to go up since then; according to the latest tax table figures, the average property tax increased by 8.25 percent between 2022 and 2018, the first year Democratic Gov. Phil Murphy took office.

(With reporting from Eric Kiefer, Patch Staff)

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