School taxes in many communities across New Jersey are set to increase significantly as a long-standing rule limiting property tax rises is temporarily lifted. This development is expected to impact school districts in Ocean and Monmouth counties.
Marc Pfeiffer, a senior policy fellow at Rutgers University's Edward J. Bloustein School of Planning and Public Policy, noted the role of inflation. “The real kicker at the end of the day has been the ongoing inflation,” Pfeiffer explained, highlighting the broader economic pressures at play.
Pfeiffer pointed out the consequences of such changes, saying, “These kinds of large swings in tax liability could have some real consequences for people in the state, and often those that are least able to bear the economic difference between what’s due this year versus what was due last year.”
He also commented on the previous tax cap's effects and the changing circumstances since 2010, when the 2% cap was introduced. “The tax cap in New Jersey has kept annual increases relatively low, but also so low that they have not reflected the natural growth of communities and costs,” Pfeiffer observed. He added, “The circumstances we have in 2025 are really different from what we had in 2010.”
The adjustments are causing concern among residents who are preparing for the financial impacts on their communities.
