Hillsborough, New Jersey Property Taxes
The median property tax rate in Hillsborough, NJ is 2.23%, considerably higher than both the national median of 0.99% and the New Jersey state median of 2.82%. With the median home value in Hillsborough at $454,200, the typical annual property tax bill reaches $9,939, far exceeding the national median of $2,690. Property taxes in Hillsborough are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Hillsborough's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Hillsborough or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Hillsborough, New Jersey Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
2.23%
Estimate Property Tax Bill
$10,129
Ownwell’s Hillsborough Property Tax Bill Calculator is a valuable tool for homeowners, real estate investors, or potential buyers to estimate their annual property taxes in Hillsborough with just two data points. By entering your property's estimated assessed value, the calculator uses the median tax rate in Hillsborough to provide an accurate estimate of your property tax bill. This tool offers a clear understanding of potential tax liabilities, helping you plan your finances better. For those interested in more detailed trends at the neighborhood level, additional localized information is available below. Your property’s assessed value is determined by Somerset County for tax calculations, factoring in any applicable exemptions.
Property Tax Rates Across Hillsborough, New Jersey
Property taxes in Hillsborough, New Jersey, are essential in funding critical local services such as public schools, road maintenance, and emergency services. The median tax rate in Hillsborough is 2.23%, significantly higher than both the New Jersey state median and the U.S. national median of 0.99%. Local government entities within Hillsborough set these rates annually, and they can vary significantly across different neighborhoods. Each year, Hillsborough estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Hillsborough's effective property tax rate to other counties in New Jersey and the national median. For comparison, the 08844 zip code has the highest median property tax rate of 2.23%, while the same zip code also has the lowest median tax rate of 2.23%. Understanding how these cities compare with Hillsborough provides valuable insights into the varying tax landscape across Somerset County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Hillsborough Tax Rate
2.23%
Average Somerset County Tax Rate
2.05%
Average New Jersey Tax Rate
2.82%
Average United States Tax Rate
0.99%
Property Tax Rates Across Hillsborough, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08844 | 2.05% | 2.23% | 2.23% | 2.23% | 2.23% |
Source: Ownwell
Property Tax Assessment Values Across Hillsborough, New Jersey
In Hillsborough, New Jersey, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Somerset County Assessor for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Hillsborough, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Hillsborough helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the zip code 08844 has both the highest and lowest median tax bill at $9,939.
Property Tax Assessment Values Across Hillsborough, New Jersey
Source: Ownwell
$230,000
$621,625
$1,013,250
Average Hillsborough Assessed Value
$454,200
Average Somerset County Assessed Value
$415,100
Average New Jersey Assessed Value
$282,900
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Hillsborough, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08844 | $242,970 | $295,700 | $454,200 | $576,100 | $732,400 |
Source: Ownwell
Property Tax Bills Across Hillsborough, New Jersey
In Hillsborough, property tax bills are calculated based on the assessed value of a property, which is determined by the local tax assessor. This assessed value is then multiplied by the local tax rate to determine the annual tax bill. Factors such as property size, location, and market conditions play a role in establishing the assessed value. In Somerset County, where Hillsborough is located, the median home price stands at $454,200. Homeowners in Hillsborough can expect a significant range in their property tax bills. For instance, the tax bill at the 25th percentile is $6,520, while at the 75th percentile, it rises to $12,786. At the 90th percentile, it can reach as high as $16,292. Notably, the highest and lowest median tax bills in the area both stand at $9,939 in the 08844 zip code. Compared to the national median property tax rate of 0.99%, Hillsborough's property taxes can be considerably higher, impacting homeowners' financial planning and overall cost of living.
Average Hillsborough Tax Bill
$9,939
Average Somerset County Tax Bill
$9,311
Average New Jersey Tax Bill
$8,227
Average United States Tax Bill
$2,690
Property Tax Bills Across Hillsborough, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08844 | $5,233 | $6,520 | $9,939 | $12,786 | $16,292 |
Source: Ownwell