Guide
How New Jersey property taxes are actually calculated
You will find four different Millburn tax rates online. Here is what each one means, and how to work out an actual bill from the assessed value.
The short answer
Your New Jersey property tax bill is your home's assessed value multiplied by the general tax rate, divided by 100. The confusion online comes from mixing up the general tax rate, the effective rate, and the equalization ratio — three different numbers that measure different things.
If you have looked up Millburn's property tax rate, you have probably found several different numbers and concluded that someone is lying. Nobody is. The numbers measure different things, and almost no one explains which is which.
The formula
New Jersey property tax is straightforward arithmetic:
Annual tax = (Assessed Value ÷ 100) × General Tax Rate
For example, if a home is assessed at $800,000 and the general tax rate is $2.019 per $100 of assessed value:
($800,000 ÷ 100) × $2.019 = $16,152
Why you see different rates
Three different numbers get called "the tax rate." They are not interchangeable.
| What it is called | What it measures | Why it differs |
|---|---|---|
| General tax rate (sometimes "the rate") |
Dollars per $100 of assessed value | This is the number you actually multiply by. It is set annually by the municipality. |
| Effective tax rate | Tax as a percentage of market value | Lower than the general rate, because assessments in New Jersey are typically below market value. |
| Equalization ratio | Assessed value as a share of market value | Set by the county. It is the bridge between the other two — not a tax rate at all. |
The equalization ratio, in plain language
New Jersey does not reassess every home every year. That means the assessed value on the books can drift well below what a house would actually sell for.
The equalization ratio expresses that gap. If the ratio is around 78%, it means assessed values in that district are running at roughly 78% of market value. A house that would sell for $1,000,000 might be assessed at roughly $780,000.
This is why an effective rate and a general rate look so different. They are dividing the same tax bill by two different denominators.
Which number should you use?
- To estimate an actual bill: use the general tax rate against the assessed value. That is how the bill is produced.
- To compare towns fairly: use the effective rate, because it normalizes for differences in assessment ratios between municipalities.
- To sanity-check a purchase: find the current assessed value on the municipal or county records — do not assume the asking price is the assessed value.
The mistake that costs people money
Buyers routinely take a published "tax rate," multiply it by the purchase price, and get a number that is far too high — because the purchase price is a market value and the rate is applied to an assessed value. If assessments are running below market, that estimate can be off by a wide margin.
Always start from the assessed value on the tax record, not the asking price.
This is general information, not tax or legal advice, and not an appraisal. Tax rates, assessments and equalization ratios change annually and vary by municipality. Confirm current figures with the municipal tax collector and the county board of taxation before relying on them. Every rate cited on this site should be verified against the current year's official notice.
Questions
Common questions
How do I calculate my New Jersey property tax bill?
Multiply the assessed value by the general tax rate and divide by 100. For example, ($800,000 ÷ 100) × $2.019 = $16,152.
Why do different websites show different Millburn tax rates?
Because they are quoting different measures. The general tax rate applies to assessed value, the effective rate applies to market value, and the equalization ratio expresses assessed value as a share of market value. All three are legitimate; they are not interchangeable.
What is the equalization ratio in New Jersey?
It is the ratio of assessed value to market value in a taxing district, set by the county. It exists because New Jersey does not reassess every property annually, so assessments can drift below market value.
Should I use the purchase price to estimate property taxes?
No. Property tax is calculated from the assessed value on the tax record, not the purchase price. Using the purchase price usually overstates the bill.
Where do I find a property's assessed value?
In the municipal tax records or through the county board of taxation. The assessed value is also shown on the annual tax notice.
Tell me what you're trying to do.
Whether you're two years out or listing next month, a conversation costs nothing and usually clarifies more than a search ever will.