Assessed value and the general tax rate
Your town’s assessor sets an assessed value. The bill is the assessed value times the general tax rate, which the state quotes per $100 of assessed value. A 2.5 general rate means $2.50 per $100 of assessed value.
Why you can’t compare general rates across towns
Towns revalue at different times, so assessments may sit well above or below market value. A town with a high general rate may actually have a modest bill.
The effective tax rate
To compare towns, the NJ Division of Taxation publishes an effective tax rate that adjusts for each town’s ratio of assessments to market value. The Division notes it is a statistical figure for comparison, not for computing a bill. In practice, market value times the effective rate gives a reasonable ballpark for the annual tax.
Where the money goes
A bill combines municipal, county and school district levies. School taxes are often the largest share.
Compare every town
Every town guide on this site lists the 2025 general rate, effective rate and average residential bill from the Division of Taxation. See the lowest effective tax rates and the lowest average tax bills.
Questions, answered
What is a good effective tax rate in NJ?
Compare against the county and statewide medians shown on each town guide. A lower rate means less tax per dollar of market value.
Why did my taxes go up after a revaluation?
A revaluation resets assessments to market value. If your home’s value rose faster than the town average, your share of the levy can increase.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.