Buying a home in Ridgewood, NJ, is a dream for many. With its top-rated schools, charming neighborhoods, and vibrant downtown, it’s easy to see why this Bergen County gem continues to attract homebuyers from across the region. But before you make an offer, it's important to understand one key factor that can impact your long-term investment: property taxes.
Ridgewood, like many New Jersey towns, has a unique property tax structure. Whether you're a first-time buyer or relocating within the area, understanding how property taxes are calculated and what to expect can help you make informed decisions. In this guide, we'll break down Ridgewood's property tax system and explain how it affects you as a homebuyer.
1. How Property Taxes Work in New Jersey
New Jersey has some of the highest property taxes in the nation, and Ridgewood is no exception. Property taxes are based on two main components:
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Assessed Value: This is the value assigned to your property by the local tax assessor. It reflects what your property is worth for tax purposes, not necessarily its market value.
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Tax Rate: This is determined by the local municipality, school district, and county. It's expressed as a percentage (or per $100 of assessed value) and used to calculate your annual tax bill.
Formula: Assessed Value x Tax Rate = Annual Property Tax Bill
2. Understanding Ridgewood’s Tax Rate
Ridgewood's property tax rate includes contributions to:
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Ridgewood public schools
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Municipal services (police, fire, road maintenance, sanitation)
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Bergen County services
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Open space and library funding
As of recent years, Ridgewood’s general property tax rate has hovered around 2.7%. For a home assessed at $750,000, that translates to an annual property tax bill of approximately $20,250.
Keep in mind that tax rates can change year to year depending on budgets, referendums, and municipal decisions. It’s wise to check with the Village of Ridgewood or consult with a local real estate expert to get the most current rate.
Keep in mind that tax rates can change year to year depending on budgets, referendums, and municipal decisions. It’s wise to check with the Village of Ridgewood or consult with a local real estate expert to get the most current rate.
3. The Assessment Process
The Ridgewood tax assessor’s office is responsible for determining the assessed value of every property in the village. Reassessments happen regularly, especially in markets where property values fluctuate significantly.
Here’s what you should know about assessments:
Here’s what you should know about assessments:
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Assessments are based on fair market value.
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They may increase after a sale, renovation, or new construction.
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You can appeal an assessment if you believe it is too high.
Buyers should be aware that a recent purchase price may influence the future assessment. That means if you buy a home above its current assessed value, your tax bill could go up in subsequent years.
4. When and How Property Taxes Are Paid
In Ridgewood, property taxes are billed quarterly:
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February 1
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May 1
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August 1
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November 1
Homeowners can pay their taxes directly or have them included in their mortgage escrow payments. If you have a mortgage, your lender typically collects a portion of your taxes each month and pays the municipality on your behalf.
5. What to Expect as a Buyer
When evaluating homes in Ridgewood, it’s essential to:
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Check current property tax bills: Sellers should provide this information.
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Ask about recent assessments: A recent reassessment might reflect a higher value.
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Factor taxes into your monthly budget: Property taxes are a significant part of your overall housing costs.
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Review potential changes: New construction or renovations can increase your tax liability.
6. Tax Appeals and Exemptions
If you believe your property is over-assessed, you have the right to file a tax appeal with the Bergen County Board of Taxation. Appeals typically must be filed by April 1 of the tax year.
Additionally, Ridgewood offers tax relief programs for:
Additionally, Ridgewood offers tax relief programs for:
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Seniors (age 65+)
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Veterans
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Disabled persons
These exemptions can provide meaningful savings, so be sure to explore eligibility if you qualify.
7. The Impact on Home Values and Resale
High property taxes are often offset by Ridgewood’s exceptional public services and schools. For many buyers, the quality of life justifies the expense. In fact, strong municipal services and high-performing schools help sustain home values and drive demand.
However, it’s important to consider how taxes will affect your resale value down the road. Buyers are becoming increasingly tax-savvy and may factor in property taxes when comparing Ridgewood to neighboring towns. Homes with more favorable assessments may have an edge in a competitive market.
However, it’s important to consider how taxes will affect your resale value down the road. Buyers are becoming increasingly tax-savvy and may factor in property taxes when comparing Ridgewood to neighboring towns. Homes with more favorable assessments may have an edge in a competitive market.
8. Work With a Local Expert
Navigating Ridgewood’s property tax system can be complex, but you don’t have to do it alone. A local real estate expert can help you:
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Understand how taxes vary by neighborhood
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Compare tax burdens across different properties
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Identify homes with favorable assessments
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Connect you with local tax professionals for appeals or planning
Partner With Maryanne Elsaesser of The Home Navigators
When buying a home in Ridgewood, having a trusted guide by your side makes all the difference. Maryanne Elsaesser of The Home Navigators offers in-depth knowledge of Ridgewood’s real estate market and property tax landscape. Her experience working with homebuyers ensures you won’t be caught off guard by hidden costs or confusing tax policies.
Whether buying your first home or upgrading to your forever home, Maryanne can help you make informed decisions and confidently navigate the home-buying process.
Property taxes are a critical factor to consider when buying a home in Ridgewood, NJ. While the rates can be high, they reflect the area's outstanding schools, public services, and community amenities. By understanding how Ridgewood’s property tax system works and working with a knowledgeable local agent, you can find the right home for your budget and lifestyle.
Looking to buy a home in Ridgewood and want expert guidance? Contact Maryanne Elsaesser of The Home Navigators today and let her help you navigate the Ridgewood real estate market with ease and confidence.
Whether buying your first home or upgrading to your forever home, Maryanne can help you make informed decisions and confidently navigate the home-buying process.
Property taxes are a critical factor to consider when buying a home in Ridgewood, NJ. While the rates can be high, they reflect the area's outstanding schools, public services, and community amenities. By understanding how Ridgewood’s property tax system works and working with a knowledgeable local agent, you can find the right home for your budget and lifestyle.
Looking to buy a home in Ridgewood and want expert guidance? Contact Maryanne Elsaesser of The Home Navigators today and let her help you navigate the Ridgewood real estate market with ease and confidence.
