It is a fair question, especially in a state like New Jersey known for its high property tax rates, to ask “what does inflation mean for your property taxes?” In this post, we’ll try to answer that question for you, and if you are interested in a move to South Jersey, we can help you to make smart loan and buying decisions that factor in all of your concerns.
It’s no secret that Americans have been noticing the rate of inflation. Prices of goods and services have risen at a higher rate than usual in the last couple of years, in no small part because of gas prices. As this article from Forbes notes, some employers have been giving raises to employees to compensate for rising prices, but this could also push residents into a higher tax bracket.
Similarly, while inflation doesn’t directly result in property tax increases, it does mean that local communities may need to raise property taxes in order to cover expenses that now cost more. In New Jersey especially, this is obviously a concern for people.
There are two things you should be aware of regarding property taxes, most importantly if you are planning a move to the Garden State.
The first is that the state of New Jersey has, in the last decade, taken measures that have slowed the rate of property tax growth. Then-governor Chris Christie enacted a property tax increase cap of 2% in 2011, and since then the rate of property tax growth has been significantly smaller than it might have been. This article from NJ Spotlight News estimates that the average property tax bill in 2021 could have been as much as $3,500 higher without the property tax cap.
So while New Jersey’s property tax rates continue to be a concern, the state government is taking steps to alleviate the problem, including directing funding to communities that depend on property taxes for their services.
The second point to remember when asking yourself “what does inflation mean for your property taxes?” is that property tax is simply part of the cost of living. If you’re looking into buying a home here in our beautiful state, it’s wise to remember that while your mortgage payment isn’t likely to rise over 15 or 30 years, your property taxes can, and it’s something you should be mindful of when budgeting for a home.
Find Out More About What Does Inflation Mean For Your Property Taxes
Yes, it’s an important question for any potential home buyer, especially in the current environment. What does inflation mean for your property taxes? It means to choose your new home wisely, and one that you’ll be able to afford in the long haul.
Planning a move to the Marlton area? Let Gina and Brian help you in your search…we can help you choose, and afford, your dream home in South Jersey. Reach out to us today to get started!
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