How much interest and penalty does New Jersey charge on unpaid property taxes?

The Division of Local Government Services says delinquency on a property may accrue interest at up to 8 percent for the first $1,500 due, and 18 percent for any amount over $1,500. The words up to matter. Each municipality sets its own rate within the limit. As an illustration, on a $4,000 delinquency the 8 percent cap would apply to the first $1,500 and the 18 percent cap to the remaining $2,500. Your tax collector can tell you the rate actually charged.

If the amount of delinquency on a property exceeds $10,000 at the end of the municipal fiscal year, the page says the municipality may charge up to a 6 percent year-end penalty. A homeowner who is far behind can therefore see a jump at year-end. The page does not say how often towns apply it, so ask the tax collector about your account.

Taxes are due in four installments each year, on February 1, May 1, August 1 and November 1, according to the page. Missing a date is when the delinquency starts. The page was captured in 2011, so the rates and dates should be confirmed with your municipality, but it is the Division's own explanation of the structure.

Unpaid taxes and municipal charges can be sold as a tax sale certificate, and the state says every municipality with delinquent taxes must hold at least one tax sale per year. The page says that after two years the certificate holder can start foreclosure in Superior Court. Another answer on this site explains tax sale certificates in more detail. The earlier you deal with a balance, the less interest builds up.

The Division's page refers to delinquent property taxes and municipal charges together, so charges your town collects alongside taxes, such as water or sewer, may be part of what is sold at a tax sale. Ask the tax collector what is open on your account and whether a certificate has already been sold. If one has, the payoff includes the redemption penalty, which the page puts at 2, 4 or 6 percent depending on the amount of the original certificate.

A sale can pay delinquent taxes from the proceeds. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. If your equity is limited, ask the tax collector for a payoff and ask a housing counselor or attorney about alternatives. Listing with an agent could bring more if the house is in good shape.