NJ Commercial Property Tax Estimator
Estimate your annual New Jersey commercial property tax using your property's market value, the municipal equalization ratio, and the local tax rate. Results are estimates only — consult your municipality for official figures.
Formula
Step 1 — Assessed Value:
Assessed Value = Market Value × (Equalization Ratio ÷ 100)
Step 2 — Taxable Assessed Value:
Taxable Assessed Value = Assessed Value + Added Assessment − Exemptions
Step 3 — Annual Property Tax:
Annual Tax = (Taxable Assessed Value ÷ 100) × Tax Rate
Step 4 — Quarterly Payment:
Quarterly Tax = Annual Tax ÷ 4
Step 5 — Effective Rate:
Effective Rate = (Annual Tax ÷ Market Value) × 100
Example: Market Value $1,500,000 | Equalization Ratio 85% | Tax Rate $3.25/100
Assessed Value = $1,500,000 × 0.85 = $1,275,000
Annual Tax = ($1,275,000 ÷ 100) × $3.25 = $41,437.50
Assumptions & References
- The Equalization Ratio (also called the Chapter 123 ratio) is published annually by the NJ Division of Taxation for each municipality. It adjusts for the gap between assessed and true market value.
- The Tax Rate is the combined rate including county, municipal, school district, and any special district levies, expressed per $100 of assessed value. Rates are set annually by each municipality.
- Added Assessments apply to new construction or improvements completed after January 1 of the tax year (N.J.S.A. 54:4-63.1 et seq.).
- Exemptions may include PILOT agreements (Payment In Lieu Of Taxes), Urban Enterprise Zone benefits, or other statutory abatements approved by the municipality.
- NJ commercial property tax is assessed as of October 1 of the pretax year and billed quarterly (February 1, May 1, August 1, November 1).
- This calculator does not account for tax appeals, Chapter 123 freeze protections, or special assessments (e.g., sewer, water).
- Source: NJ Division of Taxation — Local Property Tax; N.J.S.A. 54:4-1 et seq.