Princeton, New Jersey Property Taxes
The median property tax rate in Princeton, NJ is 2.43%, 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 at $646,500, the typical annual property tax bill reaches $16,541, 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
2.43%
Estimate Property Tax Bill
$15,710
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, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Princeton is 2.43%, significantly higher than the U.S. national median of 0.99%. Local government entities within Princeton set these rates annually, and they can vary 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 Mercer County and the national median. For comparison, the 08540 zip code has the highest median property tax rate of 2.43%, while the 08542 zip code has the lowest median tax rate of 2.43%. Understanding how these areas compare with Princeton provides valuable insights into the varying tax landscape across Mercer County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Princeton Tax Rate
2.43%
Average Mercer County Tax Rate
3.25%
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 | 2.43% | 2.43% | 2.43% | 2.88% | 2.88% |
| 08542 | 2.43% | 2.43% | 2.43% | 2.43% | 2.43% |
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 Mercer County Assessor's Office 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. Notably, the highest median tax bill in Princeton is $16,988 in the 08540 zip code, while the lowest is $11,671 in the 08542 zip code.
Average Princeton Assessed Value
$646,500
Average Mercer County Assessed Value
$216,500
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 | $264,440 | $475,550 | $662,950 | $905,025 | $1,314,700 |
| 08542 | $239,580 | $361,700 | $480,500 | $687,850 | $970,660 |
Source: Ownwell
Property Tax Bills Across Princeton, New Jersey
In Princeton, Mercer County, NJ, property tax bills are calculated based on the assessed value of a home, which is determined by local tax assessors. This assessed value is then multiplied by the local property tax rate to determine the annual tax bill. Homeowners in Princeton experience some of the highest property tax bills in the nation, with the median tax bill reaching $16,988 in the 08540 ZIP code. Factors influencing the tax bill include the home's market value, local tax rates, and any applicable exemptions. For instance, the median home price in Princeton is $646,500, significantly higher than the national median. This higher market value contributes to elevated property tax bills. The tax bill for homeowners can vary widely, with the 25th percentile at $11,872 and the 75th percentile at $22,584. These substantial property tax bills can significantly impact homeowners, affecting their overall financial planning and housing affordability. High property taxes may also influence decisions regarding property investments and long-term residency in the area.
Average Princeton Tax Bill
$16,541
Average Mercer County Tax Bill
$7,200
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 | $7,416 | $12,368 | $16,988 | $23,098 | $32,228 |
| 08542 | $5,854 | $8,799 | $11,671 | $16,674 | $23,204 |
Source: Ownwell