New Jersey Property Tax Information
📘 Understanding Chapter 123
Chapter 123 of the Laws of New Jersey (1973) established a uniform and legally permissible level of property assessments across all NJ municipalities.
Each year, the Director of the Division of Taxation calculates an equalization ratio based on recent property sales within each taxing district.
This ratio determines whether a property’s assessment is equitable compared to its true market value.
📅 Tax Appeal Filing Deadlines
April 1st – Standard filing deadline (unless extended by law)
May 1st – For revaluation or reassessment districts
January 15th – For Monmouth, Gloucester, and Burlington Counties
(applies to assessments $1,000,000 and below)
Note: Market value is determined as of October 1st of the pretax year.
🏛️ Where to File Your Appeal
Under $1,000,000: File with the County Tax Board
$1,000,000 or more: File directly with the State Tax Court
📂 Important Reference Links
⚠️ Common Causes of Over-Assessment
Incorrect land and/or building data
Misapplied depreciation (physical, functional, or external)
Errors in the cost, market, or income approach to value
Misclassification of property type
Clerical or mathematical mistakes
Unrecognized property issues such as:
Wetlands
Contamination
Easements
Deed restrictions
💡 The Taxpayer’s Common Misconception
Many NJ property owners believe their assessed value equals their fair market value — but that’s not true.
To find the property’s equalized market value, the equalization ratio must be applied:
📊 Example
If a township had a 2026 equalization ratio of 50% and your property was assessed at $1,500,000:
$1,500,000 ÷ 0.50 = $3,000,000.
Your property is being taxed as if it’s worth $3.0 million, not $1.5 million.
🧾 In Summary
Many taxpayers never file appeals simply because they’re unaware of their property’s true taxable market value.
Understanding Chapter 123 and reviewing your assessment could reveal significant potential tax savings.
