A general tax rate of $1.710 per $100. An effective rate of 1.935% — just above the New Jersey median. A 2024 average residential bill of $8,443 — meaningfully below the Monmouth County average of $10,930 and the lowest of the four Bayshore ferry-corridor boroughs. A waterfront fishing-village borough at 13 feet of elevation that took the heaviest Hurricane Sandy damage in northern Monmouth and rebuilt as an elevated post-Sandy housing stock. And full membership in the Henry Hudson Regional PK-12 School District as of July 1, 2024 alongside Atlantic Highlands — the first successful PK-12 regionalization in New Jersey under Governor Murphy’s S-3488 law.
Highlands Borough is the working waterfront half of the Bayshore corridor anchored by the Seastreak ferry terminal in neighboring Atlantic Highlands to the south and the Sandy Hook peninsula to the north. The borough occupies a 1.39-square-mile footprint along the southern edge of Sandy Hook Bay, with the Shrewsbury River as its eastern boundary. Of the borough’s total area, 46.47 percent is water (0.64 sq mi), leaving 0.74 square miles of land for a 2020 Census population of 4,621 residents (estimated 4,329 in 2023). At a density of 6,244.6 residents per square mile, Highlands ranks 8th of 53 in Monmouth County by population density — structurally the most densely settled borough in the entire Bayshore corridor. Mayor Carolyn Broullon (term ends December 31, 2028) leads a Faulkner Act (small municipality) Borough Council government, with Administrator Michael Muscillo and Tax Assessor Greg Hutchinson, ASA, CTA.
The tax math is structurally distinctive in three ways. First: Highlands sits at an elevation of just 13 feet above sea level — the lowest of any Bayshore borough — which made it the most heavily damaged municipality in northern Monmouth County during Hurricane Sandy in October 2012, and which continues to drive the borough’s FEMA flood-zone designation, flood insurance economics, and the elevated post-Sandy housing inventory now reshaping the assessed base. Second: the borough is one of the two founding constituent members of the Henry Hudson Regional PK-12 School District, formally consolidated on July 1, 2024 alongside Atlantic Highlands — making Highlands a primary beneficiary of the structural levy savings projected by the Kean University feasibility study. Third: the Twin Lights of Navesink historic lighthouse pair, perched on the 200-foot bluff above the borough, anchors a Victorian-era waterfront heritage that supports the borough’s commercial corridor along Bay Avenue.
Two 2026 catalysts intersect at Highlands. First: the Henry Hudson Regional PK-12 district is in its second full operating year, and the spring 2026 budget cycle will be the first complete consolidation-era school budget — meaning the structural levy savings projected by the Kean University study should begin to materialize. Second: the December 2025 New Jersey Supreme Court ruling authorizing Sea Bright to pursue joining Henry Hudson Regional creates an active governance question over whether the district will expand to a three-municipality regional structure. The Henry Hudson Regional Board has publicly stated it needs time to allow the new district to operate before considering Sea Bright admission. Highlands taxpayers should track the spring 2026 budget hearings closely.
The Highlands Tax Snapshot
Numbers below from the NJ Treasury 2025 General Tax Rates Table, the Monmouth County 2025 County Equalization Table, the NJ DCA MOD-IV 2024 Average Residential Tax Report, and the Borough of Highlands Tax Office.
Highlands is the value-end of the Bayshore commuter corridor. The $8,443 average bill is the lowest of the four ferry-corridor boroughs (Atlantic Highlands $8,709; Sea Bright and Monmouth Beach both above $10K) and meaningfully below the county average. The trade-off: the 1.935 percent effective rate sits just above the New Jersey median, FEMA flood zone designation drives flood insurance costs on top of the property tax bill, and the post-Sandy elevated rebuild inventory shifts the architectural character of the borough. For buyers who want ferry access at the lowest absolute tax cost in the Bayshore, Highlands is the answer — provided the flood insurance economics work for the specific property.
“Highlands is the borough where the math only works if you understand the full insurance picture. The property tax bill alone is the lowest in the Bayshore corridor — but flood insurance on a non-elevated structure can double the effective monthly carrying cost. The post-Sandy elevated rebuilds were a generational reset for this town. The buyers who win in Highlands are the ones who run the FEMA flood-zone math first, the tax math second, and the ferry math third.”
How Highlands Compares: The Bayshore Ferry Corridor
Highlands shares the Henry Hudson Regional PK-12 School District with Atlantic Highlands, and shares the Bayshore ferry-commuter buyer pool with Sea Bright and Monmouth Beach. These four boroughs all draw from overlapping commuter pools, but the tax math, the median home values, and the school district structures diverge meaningfully:
| Bayshore Corridor (2025) | Highlands | Atlantic Hghlnds | Sea Bright | Monmouth Beach |
|---|---|---|---|---|
| 2025 General Rate | $1.710 | $1.665 | $0.855 | $0.887 |
| 2025 Effective Rate | 1.935% | 1.538% | 0.872% | 0.937% |
| 2024 Avg Bill | $8,443 | $8,709 | ~$13,000+ | $10,602 |
| Elevation | 13 ft (sea level) | 266 ft (Mt Mitchill) | 10 ft (barrier) | 10 ft (oceanfront) |
| Seastreak Ferry | Adjacent (5-min) | In borough (terminal) | 10-min drive | 10-min drive |
| School District | Henry Hudson Reg PK-12 | Henry Hudson Reg PK-12 | Oceanport K-8 + Shore Reg | Monmouth Bch K-8 + Shore |
| Population (2020) | 4,621 | 4,414 | 1,449 | 3,272 |
Highlands is the lowest-priced entry point to ferry-commuter living in the four-borough corridor. The lowest absolute bill ($8,443) combined with the highest effective rate (1.935%) tells the structural story: home values are meaningfully lower than the surrounding boroughs, partly because of the sea-level flood-zone risk profile, and partly because the post-Sandy rebuild cycle is still working through the inventory. For the Atlantic Highlands counterpart with the same school district and 266 feet of elevation, see our Atlantic Highlands NJ Property Taxes 2026 deep dive. For the oceanfront barrier-island comparison, see our Sea Bright NJ Property Taxes 2026 deep dive. For Monmouth Beach lifestyle context, see our Monmouth Beach NJ real estate pillar guide.
Highlands vs Atlantic Highlands: The Sister-Borough Decision
Highlands and Atlantic Highlands share the Henry Hudson Regional PK-12 District as of July 1, 2024 — one school structure across two boroughs. But the comparable real estate decision is anchored almost entirely on geography and elevation, not schools. The data:
| Sister Borough (2025) | Highlands | Atlantic Highlands |
|---|---|---|
| 2025 General Rate | $1.710 | $1.665 |
| 2025 Effective Rate | 1.935% | 1.538% |
| 2024 Avg Bill | $8,443 | $8,709 |
| Land Area | 0.74 sq mi | 1.26 sq mi |
| Elevation | 13 ft | 266 ft (Mt Mitchill) |
| Historic Character | Waterfront fishing village | Hillside Victorian |
| Sandy Damage | Severe (rebuilt inventory) | Minimal (hillside) |
| FEMA Flood Zone | Substantial footprint | Limited to harbor district |
Three structural takeaways. First: Highlands runs a higher effective rate (1.935% vs 1.538%) despite a slightly lower absolute bill, because the median home values are meaningfully lower — the sea-level geography and flood-zone risk profile compress the assessed base. Second: the two boroughs share Henry Hudson Regional PK-12 schooling, so the educational outcomes are identical, but Atlantic Highlands offers hillside elevation and Victorian preservation inventory, while Highlands offers waterfront access at a meaningful discount with elevated post-Sandy housing stock. Third: the regionalization savings projected by the Kean University feasibility study flow proportionally to both boroughs — meaning Highlands taxpayers should see school-component compression alongside Atlantic Highlands taxpayers over the 2026-2028 budget cycles.
“Highlands and Atlantic Highlands are the same school district. They are not the same housing decision. The Atlantic Highlands buyer is buying into hillside Victorian preservation. The Highlands buyer is buying into waterfront access, ferry proximity, and elevated post-Sandy construction. Same K-12 outcomes; completely different lifestyle and risk profiles. Sophisticated buyers understand both options exist within the Henry Hudson Regional district and choose based on geography, not school district.”
How Your Highlands Tax Bill Is Built
A Highlands property tax bill combines five independently authorized levies summing to the $1.710 general rate certified for 2025:
Highlands Borough Municipal Levy. Funds Borough government — police, fire/EMS, public works, recreation, planning, and harbor/marina operations. Set by Mayor Carolyn Broullon and the Borough Council under the Faulkner Act framework. CFO Patrick J. DeBlasio (CPA, CMFO, CGFM, CTC) manages financial operations; Administrator Michael Muscillo runs day-to-day operations; Municipal Clerk Nancy Tran serves as the public-facing administrative contact. The municipal levy carries substantial fixed costs given the borough’s 1.39-square-mile footprint and the maintenance of the working waterfront infrastructure.
Henry Hudson Regional School District PK-12 Levy. Funds the unified PK-12 regional district serving both Highlands and Atlantic Highlands. Three schools: Highlands Elementary (PreK-6, 153 students), Atlantic Highlands Elementary (PreK-6, 282 students), and Henry Hudson Regional High School (7-12, 278 students). Total enrollment 725 students at an 8.4:1 student-teacher ratio. Dr. Tara Beams serves as superintendent; Janet Sherlock as business administrator. The regional levy is apportioned between Highlands and Atlantic Highlands based on each municipality’s equalized property value share.
Monmouth County Levy + Library + Open Space. County-level apportionment based on Highlands’ equalized property value share of the total Monmouth County base. The Open Space dedicated tax funds farmland and open space preservation across the county.
County Library + Open Space dedicated levies. Standard statutory components.
The Henry Hudson Regional PK-12 budget is apportioned across Highlands and Atlantic Highlands based on each municipality’s equalized property value share. Because Atlantic Highlands carries a larger aggregate assessed base, Atlantic Highlands historically absorbs a larger share of the regional levy. The Kean University feasibility study projected $270,000 in one-time savings plus structural ongoing savings from eliminated duplicative administrative positions (previously two separate business administrators across the three former districts) and access to the more favorable state aid formula under S-3488. The spring 2026 budget cycle will be the first full consolidation-era budget.
The Hurricane Sandy Recovery Story
Highlands took the heaviest Hurricane Sandy damage of any northern Monmouth municipality. The 13-foot elevation and direct exposure to Sandy Hook Bay made the entire borough vulnerable to the October 2012 storm surge. The recovery cycle reshaped the borough’s housing stock, infrastructure, and assessment base over the following decade:
Hurricane Sandy makes landfall. Highlands experiences widespread storm surge flooding across the entire borough footprint. Hundreds of homes are damaged or destroyed, particularly in the lower-lying waterfront blocks along Bay Avenue.
Federal Hurricane Sandy recovery funding flows through the New Jersey Reconstruction, Rehabilitation, Elevation, and Mitigation (RREM) program. Highlands homeowners begin elevating structures to comply with revised FEMA Base Flood Elevation requirements. The Borough adopts updated building codes requiring elevated foundations for new construction.
Active rebuild cycle. New elevated structures on pilings replace ground-level homes throughout the borough. The architectural character shifts from pre-Sandy fishing-village vernacular to modern hurricane-rated construction. Median home values stabilize and recover.
Henry Hudson Regional PK-12 School District officially forms through consolidation with Atlantic Highlands. First successful PK-12 regionalization in NJ under Governor Murphy’s S-3488 law. Highlands becomes a founding constituent member of the unified district.
First full consolidation-era school budget cycle. Kean University savings projections begin to materialize. Pending Sea Bright Supreme Court ruling raises the question of district expansion to a third constituent municipality.
For tax-base purposes, the practical implications: (1) flood insurance is a meaningful annual cost on top of property tax, with FEMA flood zone designation driving premiums; (2) elevation requirements for new construction limit buildable footprints and constrain inventory expansion; (3) the post-Sandy elevated rebuild inventory commands a meaningful premium over pre-Sandy ground-level structures because of resilience and insurance economics; (4) the borough’s working waterfront infrastructure remains the central municipal cost driver.
The Twin Lights and the Bay Avenue Commercial Corridor
The Twin Lights of Navesink — a pair of brownstone lighthouses built in 1862 on the 200-foot bluff above Highlands — anchor the borough’s historic identity. The lighthouses are a National Historic Landmark and a New Jersey State Historic Site, and serve as a primary visitor draw for the working waterfront economy. The 1.39-square-mile borough operates a commercial corridor primarily along Bay Avenue — restaurants, marinas, charter boat operations, and small-scale tourism infrastructure supporting the broader Bayshore visitor economy.
For tax-base purposes, the commercial corridor contributes meaningfully to the borough’s non-residential ratable base — though Highlands does not have a dominant single commercial anchor like Holmdel’s Bell Works or Atlantic Highlands’ Seastreak ferry terminal. The restaurant and tourism economy is the primary commercial driver, with the marina and harbor district as secondary commercial features. For broader Bayshore commercial development context, see our 2026 Monmouth County new construction inventory.
Flood Insurance Economics: The Hidden Carrying Cost
Property tax is not the only carrying cost that matters for Highlands homeowners. FEMA flood zone designation drives flood insurance premiums that can rival or exceed the annual property tax bill, particularly for non-elevated structures in higher-risk zones. Three flood-zone categories typically apply to Highlands properties:
VE Zone (Coastal High Hazard Area). Properties subject to wave action during base flood events. Highest insurance premiums; new construction must be elevated on pilings above the Base Flood Elevation.
AE Zone (1% Annual Chance Flood). Properties subject to base flood inundation but not wave action. Insurance premiums are meaningful but below VE Zone levels; new construction must meet elevation requirements.
X Zone (Moderate to Minimal Hazard). Properties outside the 1% annual chance floodplain. Lower-cost preferred risk insurance is typically available; elevation requirements do not apply.
For a Highlands property in the VE or AE zone with a non-elevated pre-Sandy structure, the combined annual cost of property tax plus flood insurance can exceed $15,000 — even though the property tax bill alone is around $8,400. For an elevated post-Sandy rebuild in the same zone, flood insurance premiums are dramatically lower because the structure complies with current FEMA elevation requirements. This is the central buyer-side analytical question for Highlands properties.
Appeal Deadlines and Tax Court Options
Highlands uses Monmouth County’s alternative appeal calendar under the ADP. For why Monmouth runs differently from the rest of New Jersey, see our complete explainer on the ADP framework, the January 15 deadline, and the seven non-ADP towns. Two deadlines apply:
January 15 — for properties assessed under $1 million in true value. Appeals are filed with the Monmouth County Board of Taxation. Tax Assessor Greg Hutchinson ([email protected]) is the first point of contact for verifying Property Record Card accuracy.
April 1 — for properties assessed over $1 million in true value. These owners have the option to file directly with the New Jersey Tax Court rather than the county board. Given Highlands’ median home value range, $1M+ inventory is concentrated in the elevated post-Sandy rebuilds and select waterfront properties.
For Highlands, the appeal economics often favor owners of pre-Sandy ground-level properties that may be over-assessed relative to current market value given the flood-zone risk profile and the inventory shift toward elevated structures. Comparable sales analysis matters more than statutory ratio plays. For county-board mechanics, see the full NJ appeal playbook.
Note on 2025 payment timeline. Per public Borough of Highlands records, the August 1, 2025 quarterly tax payment due date was extended to August 22, 2025 — a procedural extension taxpayers should be aware of when planning 2026 quarterly payments. Watch the Tax Collection office at (732) 872-1224 Ext. 211 for any similar extensions in the 2026 cycle.
“The Highlands appeal cases that win are the ones built on flood-zone comparable sales evidence. If you own a ground-level pre-Sandy structure and your assessment is calibrated against elevated post-Sandy comps, you may have a real case. The opposite is also true — if you own an elevated rebuild and your assessment is too low compared to similar elevated inventory, the next reassessment may catch you. Pull the comps that match your actual elevation and flood-zone status; that’s the analysis that wins.”
The Mansion Tax and Closing-Table Math
For Highlands sellers above $1 million — primarily the elevated post-Sandy waterfront rebuilds and select view properties — the New Jersey Realty Transfer Fee changes adopted under the FY2026 Appropriations Act on July 10, 2025 are now in effect. The legacy 1 percent Mansion Tax was replaced with a graduated rate applied to the entire sale price. On a $1.2M Highlands sale, the difference between legacy and new structure can run into meaningful additional closing cost.
The full breakdown of the 2025–2026 Realty Transfer Fee structure walks through the new graduated tiers and the pricing-cliff effects near each threshold boundary. For the complete closing-process walkthrough, see the 2026 NJ real estate closing process timeline.
Highlands has no active residential PILOT or tax abatement structures. For contrast on how PILOTs reshape effective rates in other Monmouth municipalities, see how Long Branch Pier Village condos operate under PILOT.
Tax Relief Programs Available to Highlands Homeowners
$250 Veteran Deduction + $250 Senior Citizen / Disabled Persons Deduction available under state income guidelines. Senior eligibility requires age 65+ as of December 31 of the previous year, with a $10,000 combined income limit (excluding Social Security).
100% Disabled Veteran Property Tax Exemption. Full exemption on the primary residence for honorably discharged veterans with 100% service-connected permanent disability.
Active Military Service Property Tax Deferment. Defers payment for active-duty service members during deployment.
At the state level: ANCHOR, Senior Freeze, and Stay NJ apply to qualifying Highlands homeowners. Stay NJ reimburses 50 percent of property taxes for eligible homeowners age 65+, capped at $13,000 with a 2024 cap of $6,500. All three programs are now administered through a single combined PAS-1 application. For broader context on long-term carrying cost across NJ municipalities — particularly relevant given Highlands’ below-average bill structure — see our analysis of NJ towns with the lowest property taxes.
The 2026 Budget Watch
Henry Hudson Regional 2026-27 budget. First complete consolidation-era budget cycle. Watch the spring 2026 budget hearings for the trajectory of structural savings projected by the Kean University feasibility study. The Sea Bright admission question may also surface during budget discussions.
Borough Council 2026 municipal budget. Mayor Broullon and the Borough Council adopt the 2026 budget in the first half of the year. Watch for harbor maintenance contributions, post-Sandy infrastructure capital investments, and any flood-mitigation capital programming.
Sea Bright regionalization petition. Following the December 2025 Supreme Court ruling, Sea Bright must file a substantive petition with the Commissioner of Education to proceed with withdrawal from Oceanport and Shore Regional and pursue joining Henry Hudson Regional. The Henry Hudson Regional BOE has publicly stated they need time to allow the new district to operate before considering additional constituent members. The procedural and substantive sequence will play out over multiple budget cycles.
Annual ADP reassessment cycle. Highlands participates in Monmouth County’s annual reassessment program. November 2025 postcards reflected current market values as of October 1, 2025. The 2026 cycle will track post-Sandy elevated rebuild premiums against pre-Sandy ground-level inventory.
For broader context on Monmouth County new construction in 2026, see our 2026 Monmouth County new construction inventory. For the unified K-12 district structure most analogous to Henry Hudson Regional, see our Holmdel NJ Property Taxes 2026 deep dive. For the Bayshore commuter context, see our Red Bank NYC commuter guide — which references the Highlands Seastreak ferry as a primary commute option for the entire Bayshore-to-Two River corridor.
“Highlands is one of the more interesting 2026 buyer-side stories in Monmouth. Lowest absolute property tax bill in the Bayshore ferry corridor, the same school district as Atlantic Highlands, waterfront access on Sandy Hook Bay. The math only works if you understand the flood insurance picture and price elevation status into your offer. The buyers who treat flood-zone designation as a negotiating lever rather than a deal-breaker are the ones finding real value here.”
Highlands is the Bayshore borough where the absolute tax bill is lowest in the four-borough ferry corridor and where the flood-zone, elevation, and post-Sandy rebuild math reshape every buyer decision. The 1.935 percent effective rate sits just above the New Jersey median. The Henry Hudson Regional PK-12 district consolidation now in its second full operating year aligns the educational math with neighboring Atlantic Highlands. And the Twin Lights of Navesink anchor a working waterfront heritage that supports the borough’s commercial corridor. For sophisticated buyers willing to model flood insurance into the carrying-cost equation, Highlands offers structural value that doesn’t exist anywhere else in the Bayshore.
Frequently Asked Questions
What is the 2025 property tax rate in Highlands Borough, NJ?
The 2025 general tax rate in Highlands is $1.710 per $100 of assessed value, certified by the Monmouth County Board of Taxation and published in the NJ Treasury 2025 General Tax Rates Table. The 2025 effective tax rate is 1.935%, just above the New Jersey statewide median of 1.89%.
What is the average property tax bill in Highlands?
The 2024 average residential property tax bill in Highlands was $8,443 per the NJ DCA MOD-IV Average Residential Tax Report — meaningfully below the Monmouth County average of $10,930 and below the New Jersey state average of $10,095. Highlands has the lowest absolute average bill among the four Bayshore ferry-corridor boroughs.
Where do Highlands kids go to school?
Highlands students attend the Henry Hudson Regional PK-12 School District, formed on July 1, 2024 through the consolidation of the formerly independent Highlands School District, Atlantic Highlands School District, and Henry Hudson Regional High School District. Highlands Elementary School (PreK-6) is the local elementary school; Henry Hudson Regional High School serves grades 7-12. Total district enrollment is 725 students across three schools.
How did Hurricane Sandy affect Highlands property values?
Highlands took the heaviest Hurricane Sandy damage of any northern Monmouth municipality due to its 13-foot elevation and direct exposure to Sandy Hook Bay storm surge. The 2013-2020 recovery cycle, funded in part through the federal RREM program, restructured a meaningful portion of the borough’s housing stock with elevated foundations on pilings. Today’s Highlands inventory reflects a dual character: pre-Sandy ground-level structures and post-Sandy elevated rebuilds. The elevated rebuilds command a meaningful premium because of FEMA compliance and dramatically lower flood insurance costs.
How does Highlands compare to Atlantic Highlands?
Highlands and Atlantic Highlands share the Henry Hudson Regional PK-12 School District, so the educational math is identical. The structural distinction is geography and elevation: Highlands is the waterfront fishing-village borough at 13 feet of elevation with post-Sandy elevated rebuild inventory; Atlantic Highlands is the hillside Victorian borough at 266 feet of elevation (Mount Mitchill) with preservation inventory. Highlands runs a higher effective rate (1.935% vs 1.538%) but a lower median home value, producing a similar absolute bill structure.
When is the Highlands tax appeal deadline?
January 15 of the tax year for properties assessed under $1 million in true value, filed with the Monmouth County Board of Taxation. April 1 of the tax year for properties assessed over $1 million in true value, filed directly with the New Jersey Tax Court. Tax Assessor Greg Hutchinson ([email protected]) is the first point of contact for verifying Property Record Card accuracy before filing.
Does Highlands have any PILOT properties or tax abatements?
No. Highlands has not designated any current residential redevelopment zones under N.J.S.A. 40A:20. Every residential property in the borough pays the standard general tax rate against its full assessed value.
Find Out Where Your 2026 Highlands Assessment Should Actually Land
With Henry Hudson Regional entering its second full operating year and the Sea Bright Supreme Court question hanging over the district, every Highlands homeowner should compare their November 2025 postcard against the last 12 months of block-level comparable sales — with particular attention to whether the assessment reflects current elevation status and flood-zone designation. We’ll pull the comps, model the appeal economics including the flood insurance picture, and tell you whether the case is worth bringing.
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