Ever Wondered Why You’re Still Paying for Land You Already Own?
If you live in Monmouth, Ocean, or Middlesex County, you know the pain of high property taxes. But have you ever stopped to ask why?
Why do we have to keep paying for land that was put here long before the government existed?
Who decided that simply owning property means you owe money—forever?
As a NJ real estate expert, I help homeowners navigate the reality of property taxes every day—whether they’re looking to buy, sell, or just stay afloat.
But property taxes aren’t just a “fact of life.” They have a long, fascinating, and often frustrating history that explains why we’re in this mess today.
🏛️ Property Taxes: The Ancient Problem That Never Went Away
Before Governments, Land Was Just… Land❤️👏
Long before Monmouth, Ocean, and Middlesex Counties became the sought-after real estate markets they are today, land was free for the taking—used for hunting, farming, and survival. Aaaah the good old days.😅
Early humans didn’t “own” land; they shared it, moved when necessary, and used it for what they needed.
But as civilizations grew, so did the need to control land and to fund the rulers.
That’s where property taxes began.
So how did Property Taxes get started?
It’s fascinating to find out that in Ancient Egypt (3000 BC) – Farmers paid taxes in grain and cattle to the Pharaoh. So even back then, in some areas, this concept has always existed.
Also, in the Roman Empire – Landowners were taxed based on how much olive oil and wine they produced. Mamma mia!
In Europe – Peasants worked on the king’s land in exchange for protection which is sort of like an early form of property tax. Kind of sort of right? 😂
By the time the American colonies were settled, land taxes were already ingrained in government structure. And that’s where NJ comes into the story.
So how did New Jersey became one of the Most Taxed States in the U.S?
I’ll tell Ya!
The Colonial Property Tax System (1600s-1700s)
New Jersey’s property tax system dates back to the 1600s, when early settlers were granted land in exchange for farming, military service, or trade.
By the late 1700s, NJ’s government made property taxes official to fund the
roads for trading goods, for public schools.
FYI NJ was one of the first state to require local education funding.
The property taxes also covered Fire & Safety services.
During the 1800s, NJ’s real estate market exploded thanks to railroads and industrialization.
Suddenly, land near railway hubs and trade centers skyrocketed in value.
So here is what I put a big red circle around;
🔴 Instead of taxing land equally, NJ suddenly switched to taxing market value, a decision that still affects us today. 😡
After WWII, NJ transformed into a suburban paradise.
People FLOODED into many areas:
🏡 Middletown & Freehold (Monmouth County) – Booming commuter communities
🌊 Toms River & Brick (Ocean County) – Families moving near the shore
🏙️ Edison & New Brunswick (Middlesex County) – Economic hubs with major industries
As home values soared, so did property taxes—because NJ bases taxes on assessed market value, not just land ownership.
📈 So why are property taxes based on Market Value?
And Why is it a Problem?
The government’s logic is simple: if your home is worth more, you should pay more money, but that doesn’t seem logical or fair to a lot of people.
Does Higher Value = More Public Services ?→ Do More expensive homes benefit from better schools, better roads, more police, etc?
We do know why location drives value. This we know.
So a small home in Red Bank (excellent commuter location) may have higher taxes than a mansion in South Jersey due to more accessibility to what our taxes pay?
This logic says we just spent a ton of money on this great new train station so if you live near it then you should pay more since you can use it easily.
But chances are if that area has train stations there usually are more people and houses.
So if that area has more population shouldn’t there be much more tax money in the pot to use?
Another common argument we hear often 😅
The “Fair Share” Argument → Wealthier landowners should contribute more to public services.
Sounds reasonable—until you realize it’s not.
Just because you live in a home that is more valuable doesn’t mean you are wealthier!
😡 Why Many NJ Homeowners Feel Property Taxes Are Unfair
You Can’t Control the Market.
If your area becomes more desirable, your taxes go up—even if you don’t sell your home. That’s not fair because your value increased is unrealized. You still need your home to live in!
🚨 Retirees Get Pushed Out → Many elderly homeowners in Monmouth and Ocean County can’t afford to stay due to rising taxes. It’s the number one reason people move because of the property taxes.
🚨 Punishes Long-Time Owners → A family in Middlesex County who bought their home 30 years ago may pay more today, even if their income hasn’t changed.
That’s a no nice a! Said in an Italian Accent.
🚨 NJ Has Some of the Highest Taxes in the U.S. → Unlike states with no income tax (Florida, Texas, etc.), NJ has both high state income taxes AND high property taxes.
So what are some good ideas and real solutions to make property taxes fairer in NJ?
Here are some☺️
✅ Cap Property Tax Increases for Long-Term Homeowners – Did you know that California’s has this idea implemented! Prop 13 limits tax hikes for people who have lived in their homes for 10+ years. NJ could do the same. Wouldn’t that be great?
✅ How about we tie property taxes to Income, Not Just Home Value? – A system where taxes match what people can afford would help seniors and lower-income homeowners.
✅ Higher Taxes on Vacant & Speculative Landowners –
Instead of punishing working families, NJ could tax investors & corporations who hold unused land.
Now this is actually not a good idea in my opinion, because we have been over developing many of our towns lately so scratch that idea. What are your thoughts?
✅ How about Automatic Property Tax Relief for Essential Workers & Seniors – Teachers, nurses, and for retirees, we should significantly cut property taxes for them and add guaranteed tax breaks.👏
We love you essential workers 😘😘
Would these ideas help NJ homeowners?
Let me know in the comments!
💡 Final Thoughts from a NJ Realtor Who Sees This Every Day
As a real estate professional in Monmouth, Ocean, and Middlesex Counties, I see firsthand how property taxes affect people’s lives.
I’ve helped countless homeowners to downsize to escape rising tax burdens, find towns with better tax rates and no roads (just kidding)
I even help clients understand how tax assessments work and how to file to try to get them lowered.
🏡 Thinking about buying or selling in NJ? Let’s strategize to make sure you’re not overpaying on taxes while maximizing your equity.
📲 DM me anytime or visit my website www.joannarenner.com for expert NJ real estate guidance!
Alright, now it’s your turn.
What Do YOU Think About NJ Property Taxes?
Do you think property taxes should stay as they are, or is it time for a new system?
Let’s keep the conversation super respectful & solution-focused. Avoid bashing political parties. Let’s pretend we are a bunch of land owners in the earlier times like Little House on the Prairie and we are all on the same side. 🙏🏻
Fondly,
Joanna Renner
#NJRealEstate #PropertyTaxReform #Homeownership #NewJerseyHomes #MonmouthCounty #OceanCounty #MiddlesexCounty #RealEstateInvesting #RealtorLife #TaxFairness #NJTaxes
