The highest property taxes in NJ cluster in two very different kinds of places: wealthy suburbs where six-figure home values produce five-figure tax bills, and older, denser communities where the effective tax rate itself is punishing. Millburn in Essex County leads the state on dollar amount, with an average residential bill around $25,400. Orange City, also in Essex, leads on rate, with a 2024 effective tax rate of 3.892%. Statewide, the average residential tax bill hit $10,340 in 2025.1NJ Division of Taxation. 2025 Average Residential Statistics
Which figure matters to you depends on what you’re comparing. A high bill in a high-value town can still reflect a modest rate. A moderate bill in a working-class town can reflect a very high rate. Both are worth looking at directly.
Towns With the Largest Average Tax Bills
State data published by the New Jersey Department of Community Affairs shows a small group of affluent municipalities consistently at the top for sheer dollar amounts.2New Jersey Department of Community Affairs. Property Tax Information Millburn in Essex County has reported an average residential tax bill of about $25,400 in recent years. Mountain Lakes in Morris County has come in above $22,900. Demarest and Mendham Township regularly post averages above $20,000.
These bills reflect home values more than aggressive tax rates. Millburn’s effective tax rate in 2024 was 1.652%, below the statewide average.3NJ Division of Taxation. 2024 General and Effective Tax Rates The bill is enormous because the houses are. Alpine, another perennial high-bill town in Bergen County, had an effective rate of just 0.788%. Apply even a low rate to homes worth several million dollars and the check is still large.
If you are shopping in one of these towns, the rate alone will mislead you in either direction. Ask the seller or the municipal tax collector for the actual annual bill on the specific property.
Towns and Counties With the Highest Effective Tax Rates
The highest rates belong to communities where property values are moderate but the cost of services is not. Essex County dominates the list. In 2024, Orange City posted an effective tax rate of 3.892%, West Orange 3.367%, and Irvington 3.309%. Union County contributes Roselle at 3.038% and Rahway at 2.717%. Bergen County adds Ridgefield Park at 2.744% and Hackensack at 2.678%.3NJ Division of Taxation. 2024 General and Effective Tax Rates
The pattern is consistent. Densely populated communities with older infrastructure, higher demand for social services, and a limited commercial base push their rates up. A homeowner in Irvington with a house assessed at $200,000 pays a much larger share of the property’s value in tax than a homeowner in Alpine with a $3 million house. Concentrated costs for policing, roads, and schools, spread over a smaller pool of property value, produce that imbalance.
Why the Highest-Bill Towns Aren’t the Highest-Rate Towns
Two forces separate the two lists. The first is the size of home values, which multiplies any rate into a bigger bill. The second, less obvious, is the commercial tax base. Towns with office parks, warehouses, and shopping centers can spread the levy across commercial and residential property, which directly lowers what homeowners pay.
Teterboro, a small Bergen County borough dominated by an airport and industrial properties, had an average residential tax bill of just $2,214 in 2021. Almost no residents, a huge commercial base, and the math tilts sharply toward homeowners. Paramus, home to some of the largest shopping malls in the Northeast, had a 2024 effective rate of only 1.481%, well below most of its Bergen County neighbors.3NJ Division of Taxation. 2024 General and Effective Tax Rates Bedroom communities without that commercial cushion fund their budgets almost entirely from residential property taxes, and rates rise accordingly.
Where the Money Goes
Every New Jersey property tax bill funds three layers of government: the municipality, the county, and the local school district. Schools take the biggest share in most towns. Cherry Hill’s breakdown shows about 57.5% of the property tax going directly to schools, and the pattern repeats across the state.4Cherry Hill Township. Tax Bill Breakdown 2025
New Jersey funds its K-12 schools primarily through local property taxes rather than state revenue. That single policy choice is the biggest reason property taxes are so high here. Affluent districts rely almost entirely on local taxes because the state’s school funding formula directs more aid to lower-income communities. When a wealthy district wants smaller class sizes, renovated buildings, or additional programs, the money comes straight from homeowners in that district. Local control has a price, and it prints on the quarterly bill.
How New Jersey Compares Nationally
New Jersey ranks first among all 50 states and the District of Columbia for property tax burden. The state’s average effective rate is around 2.1%, roughly double what homeowners pay in most other states. Applied to a median-priced New Jersey home of about $454,000, that comes to roughly $9,500 per year before any relief programs.
Several structural factors keep the state in the top spot. There is no broad-based state funding mechanism that shifts the cost of local services off homeowners the way some other states shift it. Local governments fund police, roads, and most operations directly through property levies. And 564 separate municipalities, more than 600 school districts, and 21 counties each set their own budgets and rates, layering the total bill.
What to Do if You Think Your Bill Is Too High
Two moves matter. Check whether your assessment reflects your home’s actual market value, and check whether you qualify for a state relief program.
On the assessment side, you can file a property tax appeal with your county board of taxation. The standard deadline is April 1, or 45 days after assessment notices are mailed, whichever comes later.5Justia. New Jersey Code 54:3-21 – Appeal by Taxpayer or Taxing District If your property’s total assessed value exceeds $1 million, you have the option of filing directly with the New Jersey Tax Court. The pivotal question is the county’s “common level range,” a 15% band above and below the average ratio of assessments to sale prices in your municipality. If your home’s assessment-to-value ratio sits above the upper limit of that range, you have a strong case for a reduction. If it falls inside the range, the board will usually leave the assessment alone. During a revaluation year the range doesn’t apply, and the assessment simply must equal market value.
Recent comparable sales in your neighborhood are the most persuasive evidence. A certified residential appraisal, which typically runs $300 to $500, strengthens the case where comparables are hard to find. County board hearings are relatively informal, and an attorney is not required for a straightforward residential case.
On the relief side, New Jersey runs several programs that can offset a high bill: the ANCHOR benefit for homeowners and renters, the Senior Freeze reimbursement for eligible residents 65 and older, a $250 annual deduction for seniors and permanently disabled residents, a $250 deduction for honorably discharged veterans, and a full exemption for veterans with a 100% permanent service-connected disability. Each has its own eligibility rules and filing deadlines, and the senior deduction in particular requires an annual refiling by March 1 that homeowners often miss.6NJ Division of Taxation. Property Tax Deduction for Senior Citizens and Disabled Persons
One caution about the rankings above. The dollar-amount and rate leaders change year to year as home values shift, budgets grow, and municipalities revalue. Before you commit to a purchase or accept a bill you think is out of line, pull the current figures from the New Jersey Division of Taxation for the specific municipality involved.