Montvale’s 2026 municipal tax levy increased nearly 7%, with officials citing rising costs for employee health insurance, police contracts, pensions, sewer service, and debt obligations as major factors behind the increase.
According to the borough’s 2026 User Friendly Budget, the municipal-purpose tax levy increased from $14.32 million in 2025 to $15.32 million in 2026, an increase of $1.0 million, or 6.99%.
The municipal-purpose tax rate increased from 0.616 to 0.662, a rise of 7.47%.
For the average Montvale home assessed at $551,726, the municipal-purpose portion of the tax bill increased from $3,385.56 to $3,652.43, an increase of approximately $266.87, according to the budget document.
Mayor Michael Ghassali recently addressed residents in a community message, saying the municipal portion of the tax bill increased by approximately $240 for the average-assessed home and that most of the overall property tax increase comes from county and school budgets, which are outside the control of the mayor and council.
The 2026 budget document shows that the municipal portion represents about one-quarter of the overall property tax bill. The largest portions are the local school district and regional school district, which together account for more than 60% of the total tax levy.
Ghassali said the borough reduced departmental operating expenses, non-contractual salaries, and discretionary spending, but faced significant increases in several structural costs.
Among the increases identified in the budget:
- Health insurance: +$340,855, with the borough noting premiums increased approximately 30%;
- Police salaries: +$357,083 due to contractual increases under the collective bargaining agreement;
- Police and Firemen’s Retirement System contributions: +$102,507 due to state pension rate increases;
- Sewer processing and disposal: +$130,000 due to increased sewer flow charges;
- Department of Public Works: +$44,598 due to contractual costs;
- Bond principal: +$200,000; and
- Bond interest: +$41,922.
“When we can keep taxes flat or limit an increase, we do,” Ghassali said. “But when significant contractual, mandated, and essential costs rise at the same time, as they did in 2026, an increase becomes unavoidable.”
The mayor also cited challenges affecting the borough’s commercial tax base, including a declining office market and corporate tax appeals. The budget shows Montvale had nine tax appeals pending through the state and county process and paid $291,620 in tax appeal refunds in 2025.
Montvale’s budget also reflects the borough’s reliance on shared services. The 2026 budget lists more than $3 million in shared services, including police dispatch through Northwest Bergen Central Dispatch, municipal court services with Park Ridge and Woodcliff Lake, and a Department of Public Works agreement with River Vale.
Ghassali encouraged residents to review the borough’s user-friendly budget and participate in public meetings and the ongoing Master Plan process.