Princeton, New Jersey Property Taxes
The median property tax rate in Princeton, NJ is 3.20%, 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 Princeton, the typical annual property tax bill reaches $11,029, far exceeding the national median of $2,690. Property taxes in Princeton 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 Princeton'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 Princeton 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
Princeton, New Jersey Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
3.2%
Estimate Property Tax Bill
$12,592
Ownwell’s Princeton Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Princeton with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Princeton to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Princeton, New Jersey
Property taxes in Princeton, New Jersey, are essential in funding critical local services such as public schools, road maintenance, and emergency services. The median tax rate in Princeton is 3.20%, significantly higher than the U.S. national median of 0.99%. Local government entities within Princeton set these rates annually, and they can vary significantly across different neighborhoods. Each year, Princeton 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 Princeton's effective property tax rate to other areas in Somerset County and the national median. For comparison, the 08540 zip code has both the highest and lowest median property tax rate of 3.20%. Understanding how these cities compare with Princeton 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 Princeton Tax Rate
3.20%
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 Princeton, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08540 | 2.03% | 2.03% | 3.19% | 3.22% | 3.22% |
Source: Ownwell
Property Tax Assessment Values Across Princeton, New Jersey
In Princeton, 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 Appraisal District 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 Princeton, 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 Princeton helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest median tax bill in Princeton is $11,029 in the 08540 zip code, while the lowest median tax bill is also $11,029 in the same zip code.
Property Tax Assessment Values Across Princeton, New Jersey
Source: Ownwell
$230,000
$621,625
$1,013,250
Average Princeton Assessed Value
$393,500
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 Princeton, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08540 | $271,000 | $319,900 | $393,500 | $567,425 | $663,800 |
Source: Ownwell
Property Tax Bills Across Princeton, New Jersey
In Princeton, Somerset County, NJ, property tax bills are calculated based on the assessed value of the home and the local property tax rate. The assessed value is determined by the local tax assessor and is supposed to reflect the market value of the property. Homeowners in Princeton face a property tax rate that is significantly higher than the national median of 0.99%. For instance, the median home price in Princeton is $393,500, which can result in substantial tax bills. The tax bill at the 25th percentile is around $8,793, while at the 75th percentile, it rises to $13,267. For those at the 90th percentile, the tax bill can reach up to $14,970. The highest median tax bill recorded in Princeton is $11,029, all within the zip code 08540. Higher property taxes can impact homeowners by increasing their annual expenses, making it crucial for them to stay informed about their property's assessed value and any available exemptions or appeal options.
Average Princeton Tax Bill
$11,029
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 Princeton, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08540 | $7,235 | $8,793 | $11,029 | $13,267 | $14,970 |
Source: Ownwell