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Property Tax Deduction/Credit
Determining the Amount of Property Taxes/Rent

All property tax relief program information provided here
is based on current law and is subject to change.

Multiple Owners. If you shared ownership of a principal residence during the year with anyone other than your spouse/civil union partner, only the amount of property taxes that reflects your percentage of ownership in the property, as shown on the deed of record, can be used when calculating the property tax deduction or credit. To determine your share of the property taxes paid, use Worksheet F-1, which is contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040). Note: The fact that one owner may be the sole occupant of the property and/or pays all of the taxes and expenses associated with it does not override the statutory requirement to apportion the taxes when calculating the property tax deduction or credit.

Multiple Units. If the principal residence you owned during the year consisted of multiple units, only the amount of property taxes attributable to the unit that you occupied as your principal residence can be used when calculating the property tax deduction or credit. The taxes must be apportioned equally among the number of units, unless the local tax assessor has determined that the units are not equal in size. Use Worksheet F-1, which is contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040), to determine the amount. Note: A condominium unit or a unit in a cooperative housing complex or mutual housing corporation is considered a single-family dwelling.

Multiple Tenants. If you occupied and shared rent for an apartment or other rental dwelling unit with anyone other than your spouse/civil union partner, use only your share of the rent constituting property taxes paid when calculating the property tax deduction or credit. To determine the amount use Worksheet F-1, which is contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040). Note: For tenants, 18% of the rent paid during the year is considered property taxes paid.

Multiple Residences. If you lived in more than one qualifying New Jersey residence during the year, you must determine the total amount of property taxes (and/or rent) to use when calculating the property tax deduction or credit by completing Worksheet F-1, which is contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040).

Part-year residents. If you were a part-year New Jersey resident, and you were either a qualified homeowner or tenant, or both a homeowner and a tenant during the part of the year you lived in this State, use the amount of property taxes (or 18% of rent) due and paid during your period of residence. Note: Complete Worksheet F-1, which is contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040), to determine the amount if the conditions listed under Multiple Residences, Multiple Owners, Multiple Tenants, or Multiple Units apply to you.

File Separate Returns but Maintain Same Principal Residence.
If you and your spouse/civil union partner file separate returns but maintain the same principal residence, only one-half of the property taxes (or one-half of 18% of rent) due and paid can be used when calculating the property tax deduction or credit.

Senior Freeze Applicants. When calculating the property tax deduction or credit for tax year 2013, do not use the amount of property taxes (or mobile home site fees) paid for 2013. You must use the amount reported on your Property Tax Reimbursement (Senior Freeze) application as follows:

  • Form PTR-1. Use the amount of your 2012 property taxes as reported on your 2013 Property Tax Reimbursement Application, Form PTR-1. (For mobile home owners this is 18% of 2012 site fees.)

  • Form PTR-2. Use the amount of your base year property taxes as reported on your 2013 Property Tax Reimbursement Application, Form PTR-2. (For mobile home owners this is 18% of base year site fees.)
Additional information on the property tax deduction or credit is contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040).
All property tax relief program information provided here
is based on current law and is subject to change.

Last Updated: Wednesday, 08/20/14



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