How are properties assessed for taxing purposes?

Market Value

New Jersey employs an "ad valorum" system of property taxation meaning that properties are taxed "according to value". The value in question is "Market Value" which is the price that can be obtained on the open market in a sale between unrelated parties, which are not being compelled to sell or buy. Accordingly, properties are assessed based on their market value.

Variables that Affect Market Value

Any factors that can influence market value are considered in the assessment. This includes (but is not limited to) the property's:

  • Age
  • Condition
  • Location
  • Size

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1. How are properties assessed for taxing purposes?
2. How often are properties assessed for taxing purposes?
3. How often do tax rates change?
4. Can I challenge the amount I pay in taxes?