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We're moving out from NYC and contemplating either Livingston NJ or some town in CT (New Canaan, Darien, Greenwich, etc).
We're shocked at how much higher property taxes are in NJ vs CT. I was trying to get an understanding of exactly why this is so.
For example, for each million dollars you spend on a house in Greenwich, CT, you pay roughly $8,000 in property taxes. In Livingston NJ, it shall be roughly $24,000.
So, if I buy a $2MM house and property taxes go up 50% over the next 10 years, I'll be paying almost $75k in Livingston vs $24k in Greenwich CT. This is a huge disparity given that they aren't really fully tax deductible (there's a $10k cap). Given my estimate that all-in income taxes for my tax bracket shall have to be 50% then (for the govt to start paying for the financial crisis costs), I'll have to earn $100,000 in gross pay annually just for the difference in property taxes between the two towns.
Greenwich schools are roughly equal whereas New Canaan and Darien schools are probably superior to Livingston's.
Does anyone know of the reason for this huge disparity? Both states are in disarray regarding pension liabilities, etc. Both Essex county and Fairfield county have poor areas (Newark / Irvington vs Bridgeport / New Haven). Is it all due to the difference in the school structures in the two states?
Has anyone seen the movie 'The Cartel' about the state of the cost-structure of NJ school districts? Any truth in that?
Last edited by CTC2; 07-05-2011 at 02:45 PM..
Reason: edited spelling of town
Welcome to New Jersey! I don't think you can really directly compare relative property taxes and school quality across states since funding of schools id done differently.
In NJ, we don't have a personal property tax like you do in CT. So we get hit with Real Estate Taxes.
True, but personal property taxes are comparatively small (a few hundred dollars for each car) relative to property taxes (unless you own a luxury yacht - we're nowhere at that level and never shall be).
Welcome to New Jersey! I don't think you can really directly compare relative property taxes and school quality across states since funding of schools id done differently.
Well, as a buyer, I MUST compare as it is very relevant...
Well, as a buyer, I MUST compare as it is very relevant...
Yes, very relevant to your decision, But I don't think you can make the direct correlation/comparison of real estate taxes and school quality across states.
I don't know anything about school systems in CT, but there's a lot of top performing schools, along with bottom performing schools in NJ... If you have children, it's worth making sure you're getting your money's worth.
but there's a lot of top performing schools, along with bottom performing schools in NJ... If you have children, it's worth making sure you're getting your money's worth.
Thanks. I think the exact same thing applies to CT as well so unfortunately does not help elucidate any differences between NJ and CT public schooling / property taxes.
Yes, very relevant to your decision, But I don't think you can make the direct correlation/comparison of real estate taxes and school quality across states.
Ok, I can also compare the all-in costs v/s school quality as well: I think state income taxes in CT are also lower (though I'm not 100% sure).
Glad that you see that this is relevant to a buyer (like me). I feel (though I may be wrong here) that this question might even be relevant to a high property tax paying NJ residents - after all they have to question why it takes a lot more of their money to bring about the same results.
We're not talking about a 10% - 20% difference in property tax here: we're talking about a 200% difference (taking CT taxes as the base) or a 67% difference (taking NJ taxes as the base).
Ok, I can also compare the all-in costs v/s school quality as well: I think state income taxes in CT are also lower (though I'm not 100% sure).
Glad that you see that this is relevant to a buyer (like me). I feel (though I may be wrong here) that this question might even be relevant to a high property tax paying NJ residents - after all they have to question why it takes a lot more of their money to bring about the same results.
We're not talking about a 10% - 20% difference in property tax here: we're talking about a 200% difference (taking CT taxes as the base) or a 67% difference (taking NJ taxes as the base).
You're beating a drum and all NJ knows the rhythm. NJ has the highest property taxes and you'll never get a satisfactory justification for it. Christie has limited increases, so your 50% increase may be less likely in NJ than in CT, but NJ will still be very very high. I would suggest just accepting that they are unreasonably high and factor it into your overall decision of home costs, total taxes, quality of living, convenience, etc.
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