If you live in certain New Jersey towns, your property tax bill last year may have included a school tax line item north of $16,000—before you paid a dollar toward your mortgage, utilities or county taxes.
New statewide data shows residents paid $18.8 billion toward public schools, an $822 million jump from the year before, according to figures from the Department of Community Affairs. In 378 municipalities, more than half of every property tax dollar went to schools.
The statewide average property tax bill hit a record $10,570 in 2025, but in a handful of towns, school taxes alone blew past that number.
The Towns Topping $16,000
Three Garden State towns averaged more than $16,000 per household just in school taxes:
- Tenafly (Bergen County)
- Mountain Lakes (Morris County)
- Demarest (Bergen County)
In Mountain Lakes, the average total tax bill exceeded $24,000, with roughly 69% going to schools.
Think about it, about $1,333 per month just for the local school district.
Mountain Lakes is one of the wealthiest towns in the state, with a median household income around $250,000 based on recent Census estimates. Even there, a $16,000 school tax represents roughly 6.4% of gross household income.
For a family earning $160,000, that same $16,000 bill would eat up about 10% of income. At $133,000, it climbs to roughly 12%. And that’s before any talk of increases.
Where Almost the Entire Bill Goes to Schools
Shamong in Burlington County didn’t top the dollar list—but it led the state in percentage. Nearly 79.5% of its average $10,322 property tax bill went toward schools.
In other words, for many homeowners, the school portion isn’t just part of the bill. It is the bill.
The Outliers: $0 School Taxes
Two towns reported no school tax burden at all, though both are unusual cases.
Lower Alloways Creek in Salem County uses revenue from nearby nuclear power plants to fund schools, meaning residents don’t receive a separate school tax charge.
Walpack in Sussex County has fewer than 10 residents, no schools and no children.
They are the exceptions. Most New Jersey homeowners fund local education primarily through their property tax bills.
What Happens Next?
School budgets for the remainder of 2026 are likely still being finalized across the state. State aid allocations, labor contracts, transportation costs and enrollment changes all factor into how much towns ultimately levy in school taxes.
Last year’s $822 million increase shows the overall trajectory has been upward.
Whether that continues—or stabilizes in certain districts—will become clearer as local boards adopt their budgets in the coming months.
For homeowners already averaging five-figure school tax bills, even small percentage increases would translate into hundreds of dollars more per year.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.