According to statistics from the Bergen County property tax bill, Demarest consistently ranks among the highest each year. As of 2024, the average property tax bill is about $24,741, making it one of the highest in Bergen County. This is a result of the median home price being around $1.37 million, which is very high.

When converted to an effective tax rate, it is about 1.8%. While the bill amount makes it one of the most burdensome cities in Bergen County, the effective tax rate itself is actually lower than that of Closter (2.07%) or Cresskill (2.27%). The high home prices create a structure where even a low tax rate results in a large absolute amount.

Insurance premiums are calculated based on the reconstruction costs of high-value homes, so it is realistic to expect an annual cost of around $2,200 to $2,600. While the direct risks of earthquakes or hurricanes are low, the nature of the area with many large homes means that the reconstruction costs estimated by insurers are high.

Maintenance costs, based on 1.5% of the home value, would be about $20,550 annually. When adding property taxes, insurance premiums, and maintenance costs together, the total annual ownership cost is estimated to be around $47,850. This translates to about $4,000 per month, which is an amount that needs to be prepared separately from the mortgage payment.

When compared to nearby Tenafly (average bill about $23,837) and Alpine (about $22,596), it is noted that Alpine has higher home prices, resulting in a lower effective tax rate than Demarest. The bill amount and effective tax rate should be viewed separately for an accurate comparison.

New Jersey does not have a separate homestead exemption program, but it operates the ANCHOR property tax rebate and Senior Freeze programs. Households that meet income criteria can apply annually to reduce their actual burden.

Korean households considering moving to Demarest should calculate the total ownership costs alongside the value of the school district and community. Especially at the point of transitioning to fixed income after retirement, the burden of property taxes may feel relatively heavier, necessitating long-term planning.