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Montgomery Is Ranked No. 17 in the Highest School Taxes Category, Learn Why

  • Writer: The Montgomery News
    The Montgomery News
  • 2 hours ago
  • 3 min read

By Barbara A. Preston | Posted December 11, 2025


According to a 2025 report on NJ.com, the Montgomery School District ranks 17th in the state for the highest school taxes.


The average Montgomery taxpayer pays $11,749 each year to the public schools. This is 68.6% of a resident’s average annual property tax bill of $17,131.


On the bright side, the overall average annual property tax of $17,131 is the lowest in the grouping of the 17 top districts.


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Montgomery High School in Skillman, NJ.

Photo by Barbara A. Preston



Why Are School Taxes High in Montgomery?

The Montgomery News asked Montgomery School Board President Patrick Todd, Superintendent of Schools Mary E. McLoughlin, and MTEA president Mike Rizzoli to comment.


President Todd responded, “As you know, school taxes are driven largely by rising costs and state requirements. The board works carefully with the administration to manage expenses while maintaining the high quality education that our community expects and deserves.”


Montgomery public schools annually produces multiple National Merit Scholars, national champions in robotics and science Olympians, and other amazing accolades.


The Montgomery School District is nationally ranked in the top 1% of general admission public schools according to U.S. News & World Report, and in the top 5% when application schools are included. (An application public school refers to Magnet/Specialized Schools, Charter Schools, that require a student to apply and be accepted.) U.S. News does not rank private Independent/Nonpublic Schools due to data availability. Private schools are not required to share SAT scores or student achievement data.



School Taxes Paid by the Average Homeowner


School Taxes Paid by the Average Homeowner in NJ

A list of the 17 public school districts in New Jersey with the highest school taxes.

(Source: nj.com)


The State School-Funding Formula Influences Local Property Taxes

Superintendent McLoughlin told The Montgomery News that many factors contribute to each school district’s property tax payments. These include demographics, which segues into the amount of state and federal aid each district receives.


“Montgomery schools are 90% local taxpayer funded. This is because we get a very small percent of federal and state funding — only about 10 percent of our budget,” she said. “Some districts are 50-50, meaning only 50% of the school budget is paid by local taxpayers.”


Wealthy districts do not get a lot of state or federal funding. (Montgomery has a median income of $223,409 - 2023 Census data).


Also, ratables make a difference. Montgomery is mostly residential—has many expensive homes with few businesses and commercial properties. This puts more of the school funding burden on residents.


McLoughlin said, “It’s not that we are charging more than other schools. Our per-student costs are not higher than most other districts. It’s the revenue sources.”


During the recent school board election, there was discussion about cutting property taxes by reducing the school budget, It is important to keep in mind that residents in wealthy districts pay the bulk of the school costs. It is how the school funding formula works in New Jersey.


Less affluent districts receive much more state aid.


And, the ratio of businesses to residents also matters. The more businesses, the less school tax the residents pay.


The average Princeton resident, for example, pays $10,772 annually in school taxes according to NJ.com. It does not mean the town pays less per student. Princeton has many more businesses and commercial properties than Montgomery, so the businesses pay a percentage of school tax.


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If a wealthy district cuts the school budget, it basically effects the schools, students, and property values.


MTEA President Michael Razzoli told The Montgomery News that the MTEA is proud to be recognized as a district that commits to investing resources in the educational success of children.


“We’ve said it before and we’ll say it again: The education our students receive is among the best in the state and the nation. We have the highest average SAT scores in the county, and we are named in the U.S. News and World Report top five percent. This doesn’t just happen; it’s the direct result of an unapologetic effort to fund our schools.


“Quality services are not something to skimp on, and we are confident that the community is getting a full return on their investment.”

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