Property Tax Deductions

NEW JERSEY STATE REBATE (Property Tax Reimbursement)

There are two separate and distinct property tax relief programs available to New Jersey homeowners.

Property Tax Reimbursement Program

Forms are sent out by the State in late February/early March. For information call 1-800-882-6597 or to visit the State of NJ website for information and downloadable forms: http://www.state.nj.us/trasury/taxation/relief.shtml.

Note: For residents who did not receive a prior year’s reimbursement or Form PTR-2 for residents who did receive a prior year’s reimbursement.

This program is designed to freeze the burden of increasing real estate taxes for qualified applicants by establishing a base year of eligibility and comparing that “base” with any subsequent year, the difference to be refunded by the State annually. Eligibility must be continuous otherwise a new base year must be established.

Qualifications are as follows:

  • Must make application annually with the State of New Jersey;
  • Homeowners age 65 or older or receiving Federal Social Security Disability Benefits and who paid property taxes on their principal residence in New Jersey;
  • Applicants must be NJ residents for at least 10 years, and living in their current home for the last 5 years;
  • Applicant must meet certain income limits for both the “base year” (year applicant first became eligible) and the application year. Income requirements are set by the State annually;
  • Property taxes must be paid in full for the years applied for by June 1st of the following year.

For more information call 1-800-882-6597.

The Homestead Benefit Program

Forms are sent out by the State in mid-April
For information call 1-888-238-1233

General qualifications are as follows:

  • Must make application annually with the State of New Jersey;
  • Own and occupy a home in NJ that was their principal residence on October 1 of the pre-tax year;
  • Have gross income under the minimum threshold set by the State (the threshold changes periodically based on the State Budget);
  • You must have had property taxes which were due and paid on the property within the year applied for.
  • Checks are no longer issued by the State. A credit will be applied against the qualified applicants tax account.

For detailed qualifications and additional information visit the NJ State website or www.state.nj.us/treasury/taxation/relief.shtml.

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SENIOR CITIZEN, DISABILITY AND SURVIVING SPOUSE DEDUCTIONS

  • New Jersey Citizenship as of October 1 of the pretax year
  • Property Ownership as of October 1 of the pretax year
  • Residence in New Jersey and in Dwelling House as of October 1  of the pretax year and
  • Residence in New Jersey for 1 year immediately prior to October 1 of the pretax year
  • Senior Citizen – age 65 or more as of December 31 of the pretax year
  • Permanent and Total Disability Deduction – Permanently and Totally Disabled as of December 31 of the pretax year
  • Surviving Spouse Deduction – age 55 or more as of December 31 of the pretax year and at the time of spouse’s death. The spouse must have been receiving either the Senior Citizen Deduction or the Disability Deduction for the same dwelling as the Surviving Spouse Deduction being claimed
  • Income (including income of the claimant’s spouse) will not exceed $10,000. (Income means all income received from whatever source derived including, but not limited to, salaries, wages, bonuses, commissions, tips, and other compensations before payroll deductions, all dividends, interest, realized capital gains, royalties, income from rents, business income, and in their entirety, pension, annuity and retirement benefits. Realized capital gains, except for capital gain from the sale or exchange of real property owned and used by the claimant as his/her principal residence, dividends, interest, pensions, annuities and retirement benefits must be included in full without deductions even though they may be wholly or partially exempt for Federal income tax purposes.) Excludable Income: Income can be excluded under ONE of the following three categories: Social Security Benefits or Federal Government Retirement/Disability Pension including Federal Railroad Retirement Benefits or State, County, Municipal Government and their political subdivisions and agencies Retirement/Disability Pension. Please contact the Assessor’s Office for the latest income guidelines as the Excludable Income has a maximum amount of exclusion that changes each year.

Only one of the above deductions may be received per principal residence regardless of the number of qualified claimants residing on the premises.

Vacation, summer or second homes do not qualify for any of the above deductions.

The current deduction for the Senior Citizen Deduction or the Disability Deduction or the Surviving Spouse Deduction is $250.00 deducted from the tax bill for each year the claimant qualifies.

Applications are available in the Assessor’s Office, on-line or through the State of New Jersey web site: www.state.nj.us/treasury/taxation/otherptr.shtml.

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100% DISABLED VETERAN EXEMPTION

Claimant must meet all of the following requirements:

  • Have had active wartime service in United States Armed Forces and been honorably discharged
  • Have a United States Veterans Administration certification of service-connected disability issued in accordance with N.J.S.A. 54:4-3.30, ET. SEQ.
  • Wholly own or hold legal title to the dwelling house for which exemption is claimed
  • Occupy the dwelling house as the principal residence
  • Be a citizen and legal or domiciliary resident of New Jersey.

Surviving Spouse of a Disabled Veteran or Serviceperson Claimant must meet all of the following requirements:

  • Document that the deceased veteran or serviceperson was a citizen and resident of New Jersey at death who had active wartime service in the United States Armed Forces and who was honorably discharged or who died on active wartime duty
  • Document that the deceased veteran had a United States Veterans Administration certification of service-connected disability issued in accordance with N.J.S.A. 54:4-3.30, ET. SEQ.
  • Not have remarried
  • Wholly own or hold legal title to the claimed dwelling house
  • Occupy the dwelling house as the principal residence

Any qualified claimant for a Disabled Veteran Exemption or the Surviving Spouse of a Disabled Veteran or Serviceperson Exemption is exempt from property taxes.

Applications are available in the Assessor’s Office, on-line or on the State of New Jersey web site: www.state.nj.us/treasury/taxation/otherptr.shtml.

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IMPORTANT REFERENCES

NJ Division of Taxation General Tax Information: 1-800-323-4400 or 1-609-826-4400
Homestead Rebate Program Information: 1-877-658-2972
Property Tax Reimbursements (Senior Freeze Act) Information: 1-800-882-6597
State of New Jersey Division of Taxation: www.state.nj.us/treasury/taxation/relief.shtml