These NJ Towns Spend The Most Tax Money On Schools

NEW JERSEY — More than half of the average New Jersey property tax bill went to the taxpayer's local school district last year, according to state data.

Earlier this year, the New Jersey Department of Community Affairs released tax data for 2024 that included a breakdown of how much the average property owner paid in county, municipal, and school taxes.

In all, the Garden State reported more than $64 million in property tax revenue for 2024. Of that, $43.6 million went to schools.

Individually, New Jersey home and business owners paid an average of $8,450 in property taxes last year, down from an all-time high of $9,803 in 2023. The school portion averaged to $5,733, or 67.8 percent of the total property tax bill.

So, which communities allocated the most property tax money toward local schools?

Shamong Township in Burlington County had the highest tax share for schools, with 80.2 percent of property taxes going to local schools.

Several other towns sent more than 70 percent of their property taxes to their local schools, including:

• Holland Township, Hunterdon County: 78.1%
• Woodland Township, Burlington County: 75.0%
• Washington Township, Burlington County: 74.9%
• Upper Freehold Township, Monmouth County: 74.4%
• Farmingdale Borough, Monmouth County: 73.4%
• Millstone Township, Monmouth County: 73.2%
• Chesterfield Township, Burlington County: 72.6%
• Alexandria Township, Hunterdon, County: 72.4%
• Lebanon Township, Hunterdon County: 72.0%
• Woodbine Borough, Cape May County: 71.7%
• Washington Township, Morris County: 71.6%
• Union Township, Hunterdon County: 71.5%
• Dennis Township, Cape May County: 71.4%
• Upper Township, Cape May County: 71.3%
• Medford Township, Burlington County: 70.9%
• Randolph Township, Morris County: 70.6%
• East Amwell Township, Hunterdon County: 70.4%
• Old Tappan Borough, Bergen County: 70.4%
• Mountain Lakes Borough, Morris County: 70.4%
• Bethlehem Township, Hunterdon County: 70.1%
• Glen Gardner Borough, Hunterdon County: 70.0%

On the other side of the coin, two communities do not pay any school tax at all. Lower Alloways Creek Township in Salem County and Walpack Township in Sussex County send 100 percent of their property taxes to the county. State data also shows they don't pay municipal taxes either.

However, these are special cases. Lower Alloways Creek eliminated local taxes more than 50 years ago, as the township raked in money from two nuclear power plants that still stand today. The average tax bill for residents here is $2,380.

Meanwhile, Walpack Township only has eight residents, according to Census data, all of whom are 65 or older. The average tax bill there is $1,156.

Nine other New Jersey towns all pay less than 10 percent of their property taxes to schools, data shows.

Property tax revenue is drawn from residential, commercial and industrial properties. Each city, town and borough has its own "effective tax rate" for county, school, and municipal taxes, which sets the amount of tax paid relative to a property's value.