NJ Property Taxes: What Buyers Should Know Before Closing

NJ Property Taxes: What Buyers Should Know Before Closing

New Jersey is known for its high property taxes, and understanding how they affect your home purchase is essential.

How Are Property Taxes Calculated?

NJ property taxes are based on the home’s assessed value and the local tax rate. Different towns have different tax rates, which can significantly impact your monthly payments.

How Property Taxes Affect Your Mortgage Payment

If you’re financing your home, your lender will include property taxes in your monthly mortgage payment. The lender holds these funds in an escrow account and pays the taxes on your behalf.

Can Taxes Change After I Buy?

Yes! Your home may be reassessed after purchase, which could increase your tax bill. Be sure to check the town’s tax assessment history and future projections before buying.

Key Takeaway

Understanding NJ property taxes helps you budget properly. Always check the current tax rate and discuss potential increases with your agent before making an offer.