How Property Taxes Are Calculated in Hudson County

(And Why Two Similar Homes Can Have Very Different Bills)

If you have ever compared two nearly identical homes in Hudson County and wondered why their property tax bills look nothing alike, you are not alone. This is one of the most common questions we hear from buyers and sellers.

Here is the short answer: property taxes in Hudson County are not based on what you paid for a home. They are calculated using assessed value, local tax rates, and timing, which is why similar homes can produce very different tax bills.

If you are actively buying or planning a future sale and want to understand how property taxes influence long-term ownership costs and buyer perception, having this context early can help avoid surprises later. Our team regularly walks clients through these numbers well before offers are written or listings go live.

The Foundation: Assessed Value vs. Market Value

Every property tax bill starts with assessed value, not market value.

• Market value is what a buyer is willing to pay.

• Assessed value is what the municipality assigns for tax purposes.

In Hudson County, assessed values are determined at the municipal level and do not always reflect current market conditions. Towns that have not completed a recent revaluation may still be using outdated assessments, while others are closer to present-day values.

This difference alone explains why two comparable homes can have very different tax bills.

For a breakdown of current tax rates by town, see our guide to Property Taxes in Hudson County. To compare property taxes, check our guide to Hoboken vs Jersey City property taxes.

How Property Taxes Are Calculated in Hudson County

Once assessed value is established, it is multiplied by the local tax rate, which is made up of three components:

Municipal Taxes

These fund local services such as police, fire, sanitation, public works, and administration.

County Taxes

This portion supports Hudson County–wide services, infrastructure, and operations.

School Taxes

Often the largest portion of the bill, school taxes fund local public education.

Each municipality combines these components into a single rate. That is why tax bills can vary between towns like Hoboken and Jersey City, even when home values appear similar.

For a statewide explanation of how New Jersey property taxes are structured, see the New Jersey Division of Taxation overview.

Why Two Similar Homes Can Have Very Different Tax Bills

Timing of Purchase

Homes that have not changed hands in many years may still be taxed based on older assessments. Recently purchased homes may reflect values closer to today’s market, depending on the municipality.

Reassessments vs. Revaluations

• Reassessments adjust values incrementally.

• Revaluations reset assessed values across an entire town.

If one property was reassessed following a revaluation and another was not, the difference in tax bills can be significant.

Property Type

Condos, brownstones, and single-family homes are assessed differently. Condo owners also share tax responsibility for common elements, which can affect how the tax burden compares to a standalone home.

Permitted Improvements

Renovations that require permits can increase assessed value. Two homes may look similar today, but one may reflect years of documented upgrades on the tax rolls.

The Role of Equalization Ratios in New Jersey

New Jersey uses equalization ratios to help align assessments with real market values across municipalities. These ratios are applied at the county level to promote fairness when assessments lag behind actual sale prices.

The Hudson County Board of Taxation oversees this process and publishes assessment guidance and appeal procedures:

Equalization ratios add another layer of complexity and are a major reason tax bills do not always track cleanly with purchase prices.

What Buyers Should Review Before Making an Offer

Property taxes directly affect monthly affordability, yet many buyers only look at the current tax bill without understanding how it was calculated.

Before making an offer, buyers should:

• Review the assessed value, not just the tax amount

• Ask whether the town has completed a recent revaluation

• Understand how a new purchase may affect future taxes

• Factor taxes into long-term monthly ownership costs

This is especially important for buyers relocating from New York City, where property taxes are structured very differently.

What Sellers Should Understand About Property Taxes

For sellers, property taxes influence buyer perception and marketing context, not the actual list of closing costs associated with a sale.

Taxes can affect:

• Buyer confidence

• Days on market

• How value is framed during negotiations

Sellers looking for a full breakdown of transaction-related expenses, including property tax proration at closing, should reference our Costs of Selling a Home in Hudson County, NJ guide.

Hudson County Property Taxes - Frequently Asked Questions

Are property taxes based on what I paid for the home?

No. Property taxes are based on assessed value, which may differ from your purchase price depending on local assessment practices.

Will my taxes automatically increase after I buy?

Not always. Some towns reassess more frequently than others, which is why timing matters.

Can property taxes be appealed in Hudson County?

Yes. Homeowners can appeal their assessment if they believe it is inaccurate, typically during an annual filing window.

Why do longtime owners often pay less than new buyers?

Longtime owners may still be taxed based on older assessments that have not fully adjusted to current market values.

About The Jill Biggs Group

The Jill Biggs Group is a leading Hudson County real estate team helping buyers and sellers navigate Hoboken, Jersey City, and surrounding communities with clarity and confidence. From understanding ownership costs to positioning homes strategically, our team brings hyperlocal expertise that goes far beyond the listing price.