Deadline for filing your tax appeal is April 1st.
Once you’ve filed your property tax appeal, you still need a certified retrospective real estate appraisal on your home with an effective date of October 1 to prove your case.
Property taxes are going up while home values in many areas are going down. Has your tax assessment been reduced to match? Now is the time to make sure you’re paying only your fair share. With home prices down 25-30 percent from peak levels in some areas, you may be paying more property taxes than the home is worth. A property tax appeal could save you hundreds, maybe thousands, of dollars now and into the future. You don’t necessarily need a lawyer, but you do need a real estate appraisal — an appraisal is the most credible evidence of recent sales comparables in your area.
How to Lower Your Property Taxes in New Jersey
This won’t work for everyone, but it may work for you. Property taxes are based on the assessed value of your home. If you can prove to your municipality that the assessed value of your home is too high, they will lower the assessed value, and this lowers your property taxes.
Difficulty: Moderately Easy
What You’ll Need
- Internet connection
- Calculator
- Your Tax Assessor’s assessed value of your home
Instructions
- Every January or February, New Jersey homeowners receive a postcard from their Tax Assessor with the assessed value of their home. Look for the Assessment Total — this is not an estimate of your home’s actual value. For that, we need a bit of math.
- Visit the NJ Division of Taxation Chapter 123 page and click your county. Find the 3 Tax Ratios for your city. If they are not between 0 and 1, divide each by 100 (for example, 24.86 becomes .2486).
- Divide the Assessment Total by the middle of the 3 Tax Ratios. Example: Assessment Total of $200,000 divided by a middle ratio of .2925 = $683,761 — your Tax Assessor’s estimate of your home’s value.
- Your Tax Assessor is allowed to be wrong by up to 15%. Divide the Assessment Total by the highest of the 3 Tax Ratios to find that threshold. Example: $200,000 divided by a highest ratio of .3364 = $594,530.
- The result from Step 4 is your “magic number.” If you believe your home’s actual value is less than that number, you may be able to appeal your assessed value and lower your property taxes.
- File the appeal with your county’s Tax Board. You can hire a real estate attorney or file on your own if you own the property individually. The deadline to file is April 1.
- Recent comparable sales — ideally from around October 1 of the previous year — are the best evidence to bring to the Tax Board. Contact us about ordering a retrospective appraisal as of October 1 for tax appeal purposes.
- There is a filing fee to go before the Tax Board.
- This won’t work for everyone, but it’s worth running the numbers. For a Petition of Appeal form and instructions, visit the NJ Division of Taxation petition form (PDF). Good luck!
We won’t waste your time or money. Because of the volume of calls we receive, we let you know the cost up front, with no hidden fees. If a hearing is needed on your assessment appeal, we’re able to professionally and persuasively testify on your behalf as an expert witness. Fees for a court hearing are $150 per hour with a four-hour minimum (includes travel time); typically 3-5 hours are needed. Browse our website to learn more about our qualifications, expertise, and services.
Property Taxes Too High?
It’s often said that there’s nothing certain in life except death and taxes. But you may be able to save money on property taxes by having your home appraised properly. Contact us and we’ll send you more information, with no obligation. We guarantee your privacy.
Metro Real Estate Appraisal Services maintains corporate offices in Sea Isle City, NJ, with a branch office in Delran, NJ. Our primary service area for typical residential appraisals covers southern New Jersey; our commercial and industrial coverage extends across New Jersey, eastern Pennsylvania, and northern Delaware, with nationwide quotes available on larger commercial/industrial properties.