How to Compare Property Taxes Between Jersey Shore Towns Before You Buy

Compare the actual tax bill on each home, not the towns' tax rates. In New Jersey, each town assesses property at its own level, so a town with a high general tax rate can still have lower bills than its neighbor; the State's effective tax rate adjusts for that. For a short list of homes, get the current bill, the assessed value and the town's effective rate, and compare those side by side.

I'm Dennis Mark Interdonato with The Dennis Mark Group. Buyers moving here from other states almost always ask about property taxes, and they're right to. Here's how the system works and how I compare it for people buying in Monmouth and Ocean County.

How is a New Jersey property tax bill figured?

The NJ Division of Taxation explains it in two steps. A town's general tax rate is the total amount it needs to raise for the town, the schools and the county, divided by the total assessed value of all taxable property in town. Your bill is that rate multiplied by your home's assessed value. Rates are expressed per $100 of assessed value.

So a home assessed at $400,000 in a town with a general tax rate of 2.000 would carry a bill of $8,000 a year: 400,000 divided by 100, times 2.000. That's an example to show the math, not a figure for any real town.

The Division also notes that, because of New Jersey's home rule tradition, the State doesn't make local budgets and doesn't receive any of the property taxes collected. Every town's number comes from its own budget, its schools and its share of county costs.

Why can't you compare towns by tax rate alone?

Because the assessed values behind the rates aren't measured the same way from town to town. The standard is market value, and every county in New Jersey assesses at 100 percent of it on paper. In practice, the State's own ratios show some towns' assessments sitting close to market value and others well above or below it. A town with low assessments needs a higher rate to raise the same money.

The State deals with this through equalization. The Division of Taxation says New Jersey's equalization program is designed so that each taxing district is treated equitably, using studies that compare assessments with actual sales. The New Jersey Department of Community Affairs defines the State Equalization Table average ratio as the ratio that equalizes tax rates between towns by adjusting for differences in municipal assessment (NJ DCA, Property Tax Information).

What's the difference between the general and effective tax rate?

• General tax rate: the rate on the bill. Use it with a home's assessed value to figure that home's tax.
• Effective tax rate: the general rate adjusted for the town's assessment level. Use it to compare one town against another.

The State's 2025 General Tax Rates table lists both numbers for every town in New Jersey, county by county. When the two numbers are far apart, that tells you the town's assessments are far from market value, and the general rate alone would mislead you.

Where do you find the numbers?

1. The current tax bill for the home. I pull it for every home on a buyer's short list. The town's tax collector can confirm it.
2. The assessed value. It's on the tax bill and in the town's assessment records.
3. The town's general and effective rates, from the State's General Tax Rates table.
4. The DCA's property tax workbook for each year, which includes the average residential tax bill by town and an interactive comparison tool.

How do Monmouth and Ocean County compare overall?

The DCA's 2025 data puts the average residential property tax, before credits and deductions, at about $11,830 in Monmouth County and about $8,167 in Ocean County, compared with about $10,570 statewide.

Those are averages across 53 towns in Monmouth and 33 in Ocean, and the range inside each county is wide. A buyer comparing a home in one town against a home in the next town over needs the bills on those two homes. For the bigger picture on choosing a county, read Monmouth County vs. Ocean County.

How do I compare taxes for buyers on a short list?

For every home a buyer is serious about, I put four things side by side: the price, the current tax bill, the assessed value next to the price, and the town's effective rate. Then we talk about what the monthly payment looks like with the taxes in it. Your lender figures the real payment, including taxes and insurance, so that number comes from them.

That last step is where people get surprised. Two homes at the same price in neighboring towns can carry very different tax bills, and the tax bill can move the payment as much as a change in interest rate. I wrote more about that in how property taxes affect your monthly mortgage payment.

What mistakes do buyers make with New Jersey property taxes?

• Comparing general tax rates between towns. Use the effective rate for town-to-town comparisons and the bill for home-to-home comparisons.
• Using an old number. Rates change every year, and a listing can carry last year's figure. Ask for the current bill.
• Ignoring a town-wide reassessment. When a town updates its assessments, bills can shift. Ask the town's assessor whether one is under way.
• Counting on relief in year one. New Jersey's property tax relief programs have ownership and residency requirements, so a new arrival usually waits. See New Jersey property tax relief in your first year.

Frequently Asked Questions

What is an effective tax rate in New Jersey?

It's a town's tax rate adjusted for how its assessments compare with market value. The State publishes it next to the general tax rate for every town so you can compare towns fairly.

How do I calculate a New Jersey property tax bill?

Multiply the home's assessed value by the town's general tax rate, which is stated per $100 of value. A $400,000 assessment at a 2.000 rate is $8,000 a year.

Which county has lower average property taxes, Monmouth or Ocean?

Ocean County, on average. The DCA's 2025 figures show about $8,167 in Ocean County and about $11,830 in Monmouth County, before credits and deductions.

Where can I see a home's current property tax bill?

Ask for it during your search. I pull it for every home on a buyer's short list, and the town's tax collector can confirm it.

This is general information, not legal, tax or lending advice. Figures come from the NJ Division of Taxation and the NJ Department of Community Affairs, checked October 9, 2026. Your attorney and lender confirm the numbers for your purchase.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark.

Keep reading

• How Dennis Mark helps buyers relocating to the Jersey Shore and the relocation guide
• Moving to New Jersey checklist: your first 60 days
• Own a home here already? See what it's worth with a free home value, and check prices in the monthly market report.
• Have a question this didn't answer? Send it to Dennis Mark and it may become the next article.