Lowest property tax rate in NJ is in a town you’ve never heard of

We all know we live in one of the most expensive states in the country.

And our taxes, especially our property taxes, are always listed as the biggest financial burden we have.

But people don’t realize it’s all about the tax rate.

The general tax rate in your town is made up of the school rate, the municipal rate, the fire district rate and the county rate. Each individual rate is created by dividing the total assessments in a municipality by the individual budget.

So, even though we complain about the amount of our property taxes, a low tax rate can make a town more attractive to live in.

Insidermonkey.com made a list of the 20 lowest tax rates in the state. They narrowed them down to the top five which I’m going to list here. The lowest is in a town that is so unusual because it only has seven residents.

Wallpack

Google Earth/Adobe Express

It's a teeny town in Sussex County incorporated in 1798 and shares services with Sandyston Township. Depending on the year, it can be the lowest populated municipality in the state. (Tavistock sometimes beats it.) Its tax rate is a paltry .58

Despite the handful of people that live there, Walpack is often ranked as one of the best places to live in New Jersey on multiple lists.

Now back to taxes. As opposed to the total tax dollars charged, the tax rate is the ratio at which you are charged. This usually is based on the amount of services and schools etc. in the town.

This list shows general and effective tax rates for New Jersey’s townships, towns, and boroughs. Out of these, the ones with the lowest taxes were selected.

Besides for Walpack, here are the other towns that round out the bottom 5 tax rate municipalities in the state.

Deal Borough

Google Earth/Adobe Express

With a tax rate of .619 the area is known for its iconic houses that were designed hundreds of years ago. It is also one of the most expensive zip codes in America.

Stone Harbor Borough

Google Earth/Adobe Express

It has the 4th lowest tax rate in the state at .589. With some of the highest single family home prices in the U.S., Stone Harbor is a summer paradise.

Spring Lake Borough

Google Earth/Adobe Express

With its gorgeous shore, Colonials and Victorians it was at one time considered the Irish Riviera. The median income there is $150,156 and its tax rate is the third lowest in the state at .587.

Cape May Point

Google Earth/Adobe Express

Another summer paradise is listed as a bargain at .58.

Up or down? Average property tax changes in NJ in 2022

Below are the average property tax bills for every municipality in New Jersey last year.

The towns are listed from the biggest cut in the average bill to the highest increase. On the county maps, the deeper red color means a higher increase above 2% whereas the darker green signifies a smaller increase or a reduction.

Each listing also shows how the average tax bill is split among the county, school and municipal governments.

Weird things NJ taxes - and some they don't

In general, New Jersey assesses a 6.625% Sales Tax on sales of most tangible personal property, specified digital products, and certain services unless specifically exempt under New Jersey law.

However, the way the sales tax is applied in New Jersey sometimes just doesn't make sense.

New Jersey puts out an itemized list for retailers that spells out what is, and what is not, taxed.

Perhaps because this is New Jersey, there are some bizarre and seemingly contradictory listings.

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Judi Franco only.

You can now listen to Dennis & Judi — On Demand! Hear New Jersey’s favorite best friends anytime, anywhere and any day of the week. Download the Dennis & Judi show wherever you get podcasts, on our free app, or listen right now.

Click here to contact an editor about feedback or a correction for this story.

Source: Lowest property tax rate in NJ is in a town you’ve never heard of