when thinking about a move.
• General Tax Rate The official rate set by the municipality each year and used to calculate property taxes. It is applied to the assessed value of your home. • Assessed Value The value assigned to your property by the town for tax purposes. This is not necessarily the same as the market value and may be higher or lower depending on when the town last reassessed properties. • Annual Tax Bill The total amount of property tax due for the year. It is calculated by applying the General Tax Rate to the Assessed Value of the property. • Effective Tax Rate A comparison tool calculated by dividing your Annual Tax Bill by the current Market Value of your home. This helps show the real tax burden relative to what your home is actually worth.
New Jersey Property Tax Basics
1. Your town assigns an Assessed Value to your home 2. The town sets a General Tax Rate 3. Assessed Value × General Tax Rate = Annual Tax Bill 4. Annual Tax Bill ÷ Market Value = Effective Tax Rate By comparing the Effective Tax Rate, you can make a more reliable, apples-to-apples comparison when looking at homes in different towns.
The Effective Tax Rate helps you compare the true tax burden of
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