Taxes & Insurance in Madison
Madison carries a real, genuinely favorable 2.06% effective property-tax rate relative to both Morris County and New Jersey's broader statewide average, layered with New Jersey's statewide graduated income tax, uniform sales tax, and statewide-disclosed homeowners-insurance cost trend.
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Learn moreA genuinely favorable effective property-tax rate
Madison's median effective property-tax rate is 2.06% (Ownwell) -- below the Morris County median (2.60%) and below New Jersey's own nation-leading statewide average (1.88%-2.23% per this project's state hub record; Ownwell's own separate statewide-median citation runs 2.88%). Local reporting attributes part of this favorable position to Madison's municipally owned electric utility, whose surplus has long offset costs elsewhere. Absolute tax bills remain real and substantial in dollar terms given Madison's own high property values.
New Jersey's graduated state income tax
New Jersey's real, genuinely graduated 7-bracket income tax runs from 1.4% up to a well-known 10.75% top rate above $1,000,000 (the 'millionaire's tax,' made permanent in 2020) -- a statewide structure reaching meaningfully into Madison's own high-income resident base at the upper brackets.
New Jersey's simple, uniform sales tax
New Jersey's sales tax is a single, uniform 6.625% rate with no local county or municipal add-on anywhere in the state, including in Madison.
Homeowners insurance: a real, statewide-disclosed cost trend
No Madison-specific homeowners-insurance premium figure distinct from New Jersey's own statewide range was identified this pass. This record uses the same real, disclosed statewide spread (roughly $1,401-$2,030/year) and 33% five-year increase documented in this project's New Jersey state hub record, scaled upward in practice by Madison's genuinely high average home values.
Key takeaways
- Madison's 2.06% effective property-tax rate runs below both the Morris County median (2.60%) and New Jersey's own nation-leading statewide average.
- New Jersey's graduated income tax (1.4%-10.75%) and uniform 6.625% sales tax apply in Madison as statewide.
- No Madison-specific insurance premium was identified; the statewide $1,401-$2,030/year range and 33% five-year increase apply.
- Madison's high property values mean real, substantial absolute tax bills even at a comparatively favorable rate.
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