Princeton, New Jersey, follows the borough form of municipal government, a structure utilized by 218 municipalities across the state, making it the predominant governance model in New Jersey. This system includes a governing body consisting of the mayor and the borough council, all of whom are elected at-large during the November general election on a partisan basis.

The mayor is directly elected by the residents for a four-year term and serves as Princeton's chief executive officer. In addition to presiding over council meetings, the mayor casts votes only in the event of a tie and has the authority to veto ordinances, which can be overridden by a two-thirds majority of the council. The council, comprised of six members, is elected to staggered three-year terms, with two seats up for election each year. This governing structure operates under a "weak mayor / strong council" model, whereby the council acts as the primary legislative body, while the mayor facilitates meetings and nominates appointees to various boards and commissions, subject to council approval.

As of 2023, Democrat Mark Freda holds the position of mayor, with his term set to expire on December 31, 2023. The current members of the Princeton Council include Council President Mia Sacks (D, 2025), David F. Cohen (D, 2023), Leticia Fraga (D, 2023), Michelle Pirone Lambros (D, 2025), Leighton Newlin (D, 2024), and Eve Niedergang (D, 2024).

In terms of fiscal responsibilities, Princeton faces challenges with its property tax rates. As of 2018, the borough's average property tax bill stood at $19,388, the highest in Mercer County, significantly exceeding the statewide average of $8,767. This disparity highlights ongoing financial pressures for residents and raises important questions about local governance and budgetary priorities.

Princeton's local government exemplifies a model of collaborative leadership, balancing the roles of the mayor and council while addressing the community's needs amidst fiscal challenges.