Patrick Rumore - The NJ Homeowner’s Guide to Lower Taxes and Better Living

Effective Tax Rate = Annual Taxes / Market Value of Home

This matters because a home with a higher price but lower effective tax rate can be a much better long term investment than a cheaper home with a high effective tax rate. Let me give you an example. These numbers are hypothetical but realistic.

Town A Home value: 1,000,000 Taxes: 30,000 Effective tax rate: 3 percent Town B Home value: 1,000,000 Taxes: 18,000 Effective tax rate: 1.8 percent

The difference in effective tax rate is huge. It tells you that Town B has a far stronger relationship between taxes and home values.

This often signals: • Strong demand • Healthy municipal budgeting • Good schools • Attractive lifestyle features • Long term appreciation potential

Comparing Some Real New Jersey Patterns Please note: These are not exact numbers. They shift yearly. But the patterns are consistent.

Paramus Taxes: Moderate Home prices: High Value: Excellent