Livingston NJ Property Tax Rate
Livingston NJ Property Tax Rate
Property taxes are one of the largest monthly payments a homeowner makes. On top of that, they vary widely across the country. In Livingston, New Jersey property taxes average 2% of home value. This can make life difficult for homeowners who are on a fixed income or cannot afford to pay the full amount each year. Luckily, there are ways around this which can help you avoid paying crazy amounts in taxes throughout your home’s lifetime.
There are two kinds of property taxes – the tax rate, and the total cost. As mentioned before, Livingston property tax is 2%. This rate is based on the price of your home and its purchase value. So if you buy a house for $50,000, you will pay $1,000 in property taxes that the first year. However, this tax rate can increase or decrease over time. The amount of increase or decrease depends on what goes into calculating your new property tax rate. In Livingston, New Jersey the tax rate is calculated based on your house’s taxable value.
Taxable value is determined by the market prices of all homes in the area. It may be higher or lower than the actual purchase price of your home. But either way, you will be paying taxes at this amount for a few years until it adjusts to match the market price.
First, you can try and pay as little as possible. This only works if you know exactly what your property tax rate is from year to year. But how does anyone know this? Simple, you look it up on the Livingston County Board of Taxation website.
The website is a great resource for all things tax-related. Not only will you find every bit of information you need, such as property tax rates, and current, and past years’ transactions, but you can even search for your own address.
Once you know your property tax rate, you can figure out how much you need to pay. Then, simply divide the total tax rate by twelve to equal your monthly payment. The most important thing to remember is that it is best to pay these taxes with a lump sum at the beginning of each year. By paying in full, you will save yourself from paying interest throughout the year and other fees.
If this method seems a bit excessive for you, then there are always alternatives for reducing your property taxes.
There are three common alternatives: reducing your mortgage principal, increasing the taxable value of your home, or selling your house and buying a new one.
Reducing mortgage is by far the most popular. It can work for any kind of property tax situation since it is based on the home’s purchase price. The only question is how much you want to reduce your payments. There are many different ways to do this but there are two main methods.
The first method is called a “Property Tax Deferment.” With this, you are able to pay your property taxes without incurring any interest. However, this is subject to certain restrictions. First, you must make single monthly payments in the amount of $750 or more per calendar year. Second, all property tax and interest accrued must be paid before the end of the term. But if your mortgage term is longer than 20 years and you are under 62 years old, then this is definitely worth it for you.