Ridgewood, New Jersey, is recognized for its excellent schools, charming neighborhoods, and vibrant downtown — making it one of the most sought-after communities in Bergen County. If you're considering buying or selling a home in Ridgewood, understanding the local property tax system is essential for making informed financial decisions and maximizing your investment.
1. The Impact of Taxes on Home Values and Resale
While property taxes in Ridgewood are on the higher side, they play a vital role in supporting the community’s excellent public services, including schools, municipal services, and recreational facilities. This investment translates into a high quality of life, which helps maintain strong property values and sustained demand.
For homebuyers in Ridgewood, knowing how property taxes impact monthly budgets and resale value can give you a competitive edge. For homeowners and sellers, understanding assessment appeals and tax exemptions can help optimize your property's value and appeal.
2. How Ridgewood Property Taxes are Calculated
Annual taxes are calculated based on the assessed value multiplied by the tax rate. In Ridgewood, as in other New Jersey municipalities, property taxes are primarily based on two components:
Tax Rate: This rate is set by the Village of Ridgewood, the local school district, and Bergen County. The tax rate is then applied to your property's assessed value to determine your annual tax bill. Currently, the general property tax rate in Ridgewood is approximately 2.73%. Keep in mind that tax rates can vary year to year due to budgetary changes. Always verify the most current rate with the Village of Ridgewood or a local real estate professional.
Property Assessment: This is the value assigned to your property by the local tax assessor's office, specifically for taxation purposes.
Proceeds from these taxes fund essential services:
-
Ridgewood Public School District
-
Vital municipal services such as police, fire protection, and road maintenance
-
Bergen County's varied services
-
Local amenities like libraries, parks, and recreation initiatives
3. Understanding the Assessment Process
The Ridgewood tax assessor's office determines the assessed value of all properties. These assessments are generally based on the fair market value of the property and are conducted periodically, especially in response to significant market shifts.
Key points to remember:
- Assessments are intended to reflect fair market value.
- Assessments may be adjusted after a property sale, renovations, or new construction.
- Property owners can appeal an assessment if they believe it is inaccurate or too high.
4. Property Tax Payment Schedule and Options
In Ridgewood, property taxes are billed quarterly, with payments due on the first of February, May, August, and November. Homeowners can pay their property taxes directly or through their mortgage escrow account. If you have a mortgage, your lender typically collects a portion of your property taxes each month and remits the full quarterly payment to the municipality.
5. Tax Appeal Process and Available Exemptions
If you believe your property has been over-assessed, you have the right to file a formal tax appeal with the Bergen County Board of Taxation, typically by April 1st of the tax year.
The Village of Ridgewood also offers tax relief programs for the following: Veterans of the U.S. Armed Forces, senior citizens (age 65+), and individuals with disabilities. These exemptions can provide cost savings, so check your eligibility.
6. Work with a Local Ridgewood Real Estate Expert
Understanding Ridgewood's property tax landscape can seem complex, but our experienced local real estate agents can help guide you through the process. Contact Christina Gibbons Group to discuss your real estate needs and begin our partnership.
Christina Gibbons Group
C: 917-837-8853
E: [email protected]