Hillsborough Township property taxes are based on property assessments, which determine each property’s market value.
The Tax Assessor’s Office sets these values to distribute the tax burden fairly.
The Tax Assessor does not set the tax rate or control how much revenue the township collects.
Instead, assessments are based on real estate market conditions, and the tax rate is determined separately.
The primary responsibility of the Tax Assessor is to determine the full and fair value of every property within Hillsborough Township, as required by N.J.S.A. 54:4-23.
This value is based on the price a property would likely sell for in a legitimate market transaction.
The New Jersey Division of Taxation and the Somerset County Board of Taxation oversee this process.
The Somerset County Board of Taxation calculates the tax rate for each municipality, including Hillsborough Township.
The tax rate is determined by dividing the total amount needed to fund municipal, county, and school budgets by the total assessed value of all properties in the township, meaning tax rates change yearly based on budget needs and total property values.
Each year, Hillsborough Township sends estimated third-quarter tax bills in July.
Many homeowners assume they can multiply this amount by four to estimate their yearly tax bill, but that is incorrect.
The third-quarter bill is an estimate, and any differences in the total tax obligation for the year are reflected in the third and fourth-quarter bills.
Hillsborough Township participates in an annual reassessment program to keep property values up to date.
Unlike in some places where reassessments only happen every few years, Hillsborough updates assessments every year based on market conditions.
A property’s value can increase, decrease, or stay the same, depending on real estate trends.
Many people think their property value only changes when an inspector visits, but that is not the case.
Market trends determine assessments, which are updated each year regardless of inspections.
However, to maintain accuracy, each property is physically inspected at least once every five years.
During an inspection, both the exterior and interior of the home are reviewed.
If the homeowner is not present, the inspector will leave a notice with a contact number so the owner can schedule an interior inspection.
If access is denied, the interior assessment will be estimated based on similar properties in the neighborhood.
Hillsborough Township offers property tax relief programs, including state deductions and rebates.
Homeowners should check with the Assessor’s Office or visit the township website to see if they qualify.
The 2024 tax bill breakdown is as follows:
- Hillsborough Township’s portion: 13.56%
- Somerset County’s portion: 17.75%
- Fire District funding: 2.79%
- Open Space funding: 1.30%
- School taxes: 64.61%
The majority of property tax revenue, 64.61%, funds the local school district.
The remaining amount is distributed among municipal services, the county, fire protection, and open space preservation.
Annual assessment postcards will be mailed in March, displaying the 2025 assessed property value and the 2024 tax amount billed.
The assessed value determines the following year’s tax bill based on the tax rate set by the Somerset County Board of Taxation.
