Paterson, New Jersey Property Taxes
The median property tax rate in Paterson, NJ is 4.64%, 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 Paterson at $194,000, the typical annual property tax bill reaches $8,903, far exceeding the national median of $2,690. Property taxes in Paterson 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 Paterson'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 Paterson 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
Paterson, New Jersey Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
4.64%
Estimate Property Tax Bill
$9,002
$8,353
Ownwell’s Paterson Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Paterson with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Paterson 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 Paterson, New Jersey
Property taxes in Paterson, New Jersey, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Paterson is 4.64%, significantly higher than the U.S. national median of 0.99%. Local government entities within Paterson set these rates annually, and they can vary significantly across different neighborhoods. Each year, Paterson 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 Paterson's effective property tax rate to other areas in Passaic County and the national median. For comparison, the zip code 07508 has the highest median property tax rate of 5.41%, while zip code 07501 has the lowest median tax rate of 4.64%. Understanding how these cities compare with Paterson provides valuable insights into the varying tax landscape across Passaic County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Paterson Tax Rate
4.64%
Average Passaic County Tax Rate
4.57%
Average New Jersey Tax Rate
2.82%
Average United States Tax Rate
0.99%
Property Tax Rates Across Paterson, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 07501 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07502 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07503 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07504 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07505 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07508 | 5.41% | 5.41% | 5.41% | 5.41% | 5.41% |
| 07513 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07514 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07522 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
| 07524 | 4.48% | 4.64% | 4.64% | 4.64% | 4.64% |
Source: Ownwell
Property Tax Assessment Values Across Paterson, New Jersey
In Paterson, 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 Passaic 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 Paterson, 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 Paterson helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. In Paterson, the highest median tax bill is $11,649 in the 07508 zip code, while the lowest median tax bill is $3,830 in the 07505 zip code.
Average Paterson Assessed Value
$194,000
Average Passaic County Assessed Value
$226,800
Average New Jersey Assessed Value
$282,900
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Paterson, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 07501 | $93,520 | $128,700 | $178,200 | $221,550 | $263,270 |
| 07502 | $147,020 | $176,450 | $203,400 | $233,100 | $276,440 |
| 07503 | $127,120 | $160,400 | $197,500 | $238,500 | $288,060 |
| 07504 | $155,310 | $189,175 | $230,450 | $280,925 | $333,790 |
| 07505 | $68,540 | $75,600 | $89,900 | $117,300 | $147,970 |
| 07508 | $215,400 | $215,400 | $215,400 | $215,400 | $215,400 |
| 07513 | $152,940 | $180,000 | $215,800 | $259,900 | $303,260 |
| 07514 | $115,200 | $153,200 | $191,200 | $241,850 | $301,400 |
| 07522 | $85,060 | $123,800 | $167,200 | $214,100 | $264,819 |
| 07524 | $101,100 | $141,700 | $176,900 | $223,800 | $270,600 |
Source: Ownwell
Property Tax Bills Across Paterson, New Jersey
In Paterson, located in Passaic County, NJ, property tax bills are calculated based on the assessed value of a home and the local tax rate. The assessed value is determined by the local tax assessor and is meant to reflect the market value of the property. The local tax rate is then applied to this assessed value to calculate the annual property tax bill. Several factors influence the assessed value, including the property's location, size, and condition. For instance, a median-priced home in Paterson, valued at around $194,000, can expect a tax bill ranging from $3,830 in certain areas to as high as $11,649 in others. This wide range highlights the significant impact of location and property characteristics on tax obligations. Homeowners in Paterson face higher property tax rates compared to the national median of 0.99%, which can affect their financial planning and overall cost of living. Understanding these factors is crucial for homeowners to anticipate their property tax responsibilities accurately.
Average Paterson Tax Bill
$8,903
Average Passaic County Tax Bill
$9,911
Average New Jersey Tax Bill
$8,227
Average United States Tax Bill
$2,690
Property Tax Bills Across Paterson, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 07501 | $4,236 | $5,905 | $8,212 | $10,223 | $12,190 |
| 07502 | $6,690 | $8,028 | $9,326 | $10,742 | $12,737 |
| 07503 | $5,771 | $7,332 | $9,080 | $10,983 | $13,244 |
| 07504 | $7,061 | $8,662 | $10,586 | $12,845 | $15,357 |
| 07505 | N/A | $3,384 | $3,830 | $4,997 | $6,092 |
| 07508 | $11,649 | $11,649 | $11,649 | $11,649 | $11,649 |
| 07513 | $6,982 | $8,226 | $9,901 | $11,958 | $14,028 |
| 07514 | $5,198 | $7,006 | $8,776 | $11,149 | $13,951 |
| 07522 | $3,860 | $5,696 | $7,694 | $9,822 | $12,198 |
| 07524 | $4,605 | $6,485 | $8,110 | $10,342 | $12,519 |
Source: Ownwell