How do property taxes work for newly built homes?
By Bob Millaway, South Jersey Community Expert & REALTOR®
Newly built homes in New Jersey are initially taxed based on the value of the land only. Once construction is complete, the municipality reassesses the property at its full improved value. This often results in a significant tax increase, sometimes called a supplemental assessment. Buyers should budget for this adjustment after the first year.
Why It Matters
New home buyers often underestimate their future tax bill because they see the initial land-only assessment. Budgeting for the increase prevents payment shock.
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