Understanding Your
Property Taxes

Your property tax bill supports three main levels of government: your municipality (town or township), your school district, and your county. In Burlington County, the county portion covers services like county roads, parks, and the county court system. The municipal portion covers local services like police, fire, trash collection, and road maintenance. The school portion is typically the largest share, often 50 to 60 percent of the total bill. There may also be a small portion for a fire district or library if your town has one.

The tax rate is calculated by dividing the total amount of money the municipality, school district, and county need to raise by the total assessed value of all taxable property in the municipality. The result is expressed as a rate per $100 of assessed value. For example, if a town needs to raise $10 million and the total assessed value of all properties is $500 million, the tax rate would be $2.00 per $100 of assessed value. A home assessed at $250,000 would pay $5,000 in property taxes.

In New Jersey, property taxes are typically paid quarterly. The due dates are February 1, May 1, August 1, and November 1. Many municipalities offer a grace period of about 10 days. If you have an escrow account as part of your mortgage, your lender collects one-twelfth of your estimated annual taxes with each monthly mortgage payment and pays the tax bill on your behalf. This is the most common arrangement for homeowners with a mortgage.

Market value is what a willing buyer would pay a willing seller for your home in the current real estate market. It is determined by comparable sales, market conditions, location, condition, and demand. It changes constantly. If you sold your home today, the price you would get is its market value. This is the number that matters when you are buying or selling a home.

Assessed value is the value assigned to your property by the municipal tax assessor for the purpose of calculating your property tax bill. It is supposed to reflect market value, but it is only updated when the municipality conducts a revaluation or reassessment. In towns that have not done a revaluation in many years, assessments can be significantly lower than market values. This does not necessarily mean you are paying less tax, because the tax rate adjusts to compensate.

What matters for fairness is not whether your assessment matches the market, but whether your assessment is consistent with assessments of similar properties in your town. If your neighbor's identical home is assessed at 20 percent less than yours, you are paying more than your fair share, even if your assessment is below market value. This is the basis for most successful tax appeals.

Your tax bill shows the property's block and lot number, the owner's name and address, the assessed value of the land and the improvements (buildings) separately, the total assessed value, the tax rate, the amount due for each taxing entity, the total amount due, and the payment due dates. It also shows the previous year's taxes for comparison. Check that the block and lot number matches your deed. An error in the property description can mean you are paying taxes on the wrong piece of land.

The bill breaks down your tax payment into the municipal portion, the school portion, the county portion, and any special district levies (fire district, library, etc.). The school portion is typically the largest. In Burlington County, school taxes often account for 50 to 60 percent of the total. The municipal portion covers local services like police, fire, roads, and trash collection. The county portion funds county-wide services.

Each tax bill shows the previous year's total for comparison. If your bill increased significantly, there are three possible reasons: your assessment increased, the tax rate increased, or both. Understanding which one changed helps you decide whether an appeal is appropriate. If your assessment stayed the same but the tax rate went up, an appeal will not help because the rate applies to all properties equally.

The basis for an appeal is that your assessment is too high compared to similar properties. You need evidence. Start by looking up the assessed values of comparable homes in your neighborhood. Comparable homes should be similar in size, age, condition, and location. If you find that your assessment is significantly higher than similar homes, you have a case. You can also get a professional appraisal, which is stronger evidence but costs $400 to $600.

In New Jersey, you must file your tax appeal by April 1 of the tax year. If your municipality has a different tax calendar, you have 45 days from the date the tax bill is mailed. File with the Burlington County Board of Taxation. The filing fee is modest, typically $25 to $50. You will need to complete a form (State Form PTR or your county's equivalent) and attach your evidence. For properties assessed over $1 million, appeals go directly to the New Jersey Tax Court.

Before filing a formal appeal, call or email your municipal tax assessor. Many issues can be resolved informally. The assessor can explain how your assessment was determined and may agree to adjust it if your evidence is compelling. This saves everyone time and paperwork. I have seen this work for homeowners who simply took the time to understand their assessment and present their case clearly.

If your appeal is successful, your assessment is reduced, and your tax bill is adjusted accordingly. The reduction applies to the current tax year and future years until the next reassessment. You may also receive a refund for taxes already paid in the current year. The refund amount depends on when your appeal is decided. Most successful appeals result in modest savings, but even a $200 per year reduction adds up over time.

In Burlington County, property tax rates vary widely from one town to the next. Towns with higher property values, like Moorestown and Mount Laurel, often have lower tax rates because the tax base is spread across more value. Towns with lower property values or higher service needs may have higher rates. School districts are the biggest driver of rate differences. If you are considering buying a home in a different town, compare the effective tax rates, not just the assessed values.

Property taxes directly affect home values. In areas with higher taxes, buyers typically offer less for a home because the monthly carrying cost is higher. This is why two identical homes in different towns can have significantly different market values. When you are buying, always factor the property tax bill into your monthly budget. A lower purchase price can be offset by much higher taxes, and vice versa. I always include a tax analysis in my buyer consultations.

When you are looking at homes in Burlington County, always ask about the current property tax bill. The listing agent should provide this information. Compare the tax bill as a percentage of the purchase price across different properties. A home with a $5,000 tax bill and a $400,000 price has an effective rate of 1.25 percent, while a home with a $7,000 tax bill and the same price has a rate of 1.75 percent. That $2,000 difference per year is $167 per month, which affects your mortgage qualification.

The Tax Cuts and Jobs Act of 2017 capped the state and local tax (SALT) deduction at $10,000 per year for married couples filing jointly and single filers. This means you can deduct up to $10,000 in combined state income taxes and property taxes. For New Jersey homeowners, where property taxes alone often exceed $10,000, this cap means many people cannot deduct their full property tax bill. You can only claim this deduction if you itemize your deductions on Schedule A of your federal tax return.

The standard deduction for 2026 is substantial, so many homeowners no longer benefit from itemizing. You should itemize only if your total itemized deductions (mortgage interest, property taxes, charitable contributions, and other deductions) exceed the standard deduction. A tax professional can help you determine which approach saves you more money. For most New Jersey homeowners with a mortgage, itemizing still makes sense, but the SALT cap reduces the benefit.

Mortgage interest on up to $750,000 of acquisition debt is also deductible if you itemize. This is separate from the property tax deduction and is not subject to the SALT cap. For most homeowners, mortgage interest is the larger deduction. Combined with the property tax deduction, these two deductions are the primary reason homeowners benefit from itemizing.

Not necessarily. Your assessment and the tax rate are separate. If your assessment stays the same but the tax rate increases, your bill can go up even if your home value has declined. The tax rate is driven by the budget needs of the municipality and school district, not by individual property values.

Filing a tax appeal costs $25 to $50, and you do not need a lawyer for small cases. Many homeowners successfully appeal their assessments by providing comparable sales data. The process is straightforward, and even a modest reduction saves you money year after year.