Somerset, New Jersey Property Taxes
The median property tax rate in Somerset, NJ is 2.04%, 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 Somerset at $380,700, the typical annual property tax bill reaches $7,528, significantly exceeding the national median of $2,690. Property taxes in Somerset 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 Somerset'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 Somerset 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
Somerset, New Jersey Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
2.04%
Estimate Property Tax Bill
$7,766
$7,207
Ownwell’s Somerset Property Tax Bill Calculator is an essential tool for homeowners, real estate investors, and potential buyers to estimate their annual property taxes in Somerset, NJ with just two data points. By entering your property's estimated assessed value, the calculator utilizes the median tax rate in Somerset to provide an accurate estimate of your property tax bill. This valuable tool offers insight into potential tax liabilities, helping you make informed financial decisions. For those interested in more granular data, neighborhood-level trends are available further down the page. Your property’s assessed value, determined by the county, is used for property tax calculations and may include applicable exemptions.
Property Tax Rates Across Somerset, New Jersey
Property taxes in Somerset, NJ, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Somerset is 2.04%, significantly higher than the U.S. national median of 0.99%. Local government entities within Somerset set these rates annually, and they can vary significantly across different neighborhoods. Each year, Somerset 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 Somerset's effective property tax rate to the national median. For comparison, the zip code 08873 has both the highest and lowest median property tax rate of 2.04%. Understanding how these areas compare with Somerset 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 Somerset Tax Rate
2.04%
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 Somerset, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08873 | 1.85% | 2.03% | 2.04% | 2.05% | 2.05% |
Source: Ownwell
Property Tax Assessment Values Across Somerset, New Jersey
In Somerset, NJ, 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 local 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 Somerset, 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 helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code 08873 has the highest median tax bill, valued at $7,528, while the lowest median tax bill is also in the same zip code, reflecting a consistent tax landscape.
Average Somerset Assessed Value
$380,700
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 Somerset, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08873 | $261,000 | $301,200 | $380,700 | $465,500 | $580,790 |
Source: Ownwell
Property Tax Bills Across Somerset, New Jersey
In Somerset, 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 county assessor and reflects the property's market value. Somerset's median home price is $380,700, which plays a significant role in determining individual tax bills. Homeowners in Somerset can expect their property tax bills to vary significantly. For instance, the tax bill at the 25th percentile is around $6,014, while at the 75th percentile, it rises to $9,269. Those in the 90th percentile face a tax bill of approximately $11,709. These variations highlight how factors such as property size, location, and market conditions impact tax assessments. Compared to the national median property tax rate of 0.99%, Somerset's property taxes are relatively high, reflecting the higher property values and local tax rates. This can significantly affect homeowners, influencing their overall housing costs and financial planning.
Average Somerset Tax Bill
$7,528
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 Somerset, New Jersey
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 08873 | $5,073 | $6,014 | $7,528 | $9,269 | $11,709 |
Source: Ownwell