Leonia often receives questions about why property taxes are so high when home prices are not overly burdensome. In fact, Leonia's effective tax rate is about 3.36%, which exceeds the Bergen County average (around 2.73%) and is noticeably higher than nearby Palisades Park and Ridgefield.

According to Zillow, the median home price in Leonia is around $780,000. Applying the effective tax rate of 3.36% results in an estimated annual property tax of about $26,200. While home prices are similar to those in Cresskill (around $730,000), the property tax burden can be significantly higher in Leonia.

Insurance premiums are expected to be in the standard range for inland areas, around $1,700 to $2,000 per year. Although the risk of major disasters like hurricanes or wildfires is low, many households are increasingly considering additional coverage for plumbing and electrical wiring due to the prevalence of older homes.

Maintenance costs are estimated at about $11,700 per year, based on 1.5% of the home price. When combining property taxes, insurance premiums, and maintenance costs, the total annual ownership cost reaches approximately $39,900. Dividing this by 12 results in about $3,325 per month, making it prudent to assess whether one can manage this fixed cost in addition to mortgage payments.

Looking at neighboring Palisades Park or Ridgefield, the effective tax rates are around 1.5% to 1.7%, about half of Leonia's rate. If the living conditions, such as school access and downtown proximity, are similar, comparing property tax burdens with neighboring towns can be a practical choice.

In New Jersey, instead of a homestead exemption, there is the ANCHOR property tax rebate program, and senior households aged 65 and older can receive rebates on property tax increases through the Senior Freeze program. In areas like Leonia with high tax rates, taking advantage of these programs can provide significant relief.

For households considering a move to Leonia, it is advisable to calculate not just the home price but also the tax rate to get a clearer picture of total ownership costs. Many have been surprised by the significant portion that property taxes can represent.