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Homestead Benefit Amount for Homeowners
Age 65 or Older and/or Disabled on December 31, 2011

The homestead benefit calculation is based on the applicant's:

  • 2011 New Jersey gross income,
  • 2011 filing status (single, married, filing jointly, head of household, etc.),
  • Age/disability status (whether applicant was age 65 or older and/or disabled on December 31, 2011),
  • Property taxes paid in 2006 on principal residence.

The State Budget requires that the 2011 benefit be based on 2006 property taxes. For purposes of calculating the 2011 benefit, the 2006 property taxes for the dwelling that was the applicant’s principal residence on October 1, 2011, will be used. If no property taxes were assessed on that dwelling for 2006, the Division of Taxation will determine the amount of property taxes that would have been due for 2006 by using the current assessed value and the 2006 property tax rate.

Under the terms of the Budget, the 2011 benefit amount cannot exceed the homestead rebate amount paid for 2006 unless there has been a change in an applicant’s filing characteristics. “Filing characteristics” means a reduction in income range, a change in age/disability status or filing status, or an increase in percentage of ownership. If the homeowner did not receive a 2006 homeowner rebate, it cannot be taken into account to determine the 2011 benefit.

Multiple Owners/Multiple Units. When the property is owned by more than one person (other than husband and wife/civil union partners), only the proportionate share of property taxes for an applicant’s percentage of ownership in the property is used when calculating the benefit. For a property that contains more than one unit, only the proportionate share of property taxes for the unit the applicant occupies as their principal residence will be used.

Homeowners Age 65 or Older and/or Disabled

Most 2011 benefits will be paid as a credit
applied to property tax bills in August 2013.

Benefits for certain homeowners will be paid
in the form of a check or direct deposit in August 2013.

If your 2011 New Jersey
gross income* is...

Your benefit amount** is calculated by …

Not over $100,000

Multiplying the amount of your 2006
property taxes paid (up to $10,000) by 10%

Over $100,000
But not over $150,000

Multiplying the amount of your 2006
property taxes paid (up to $10,000) by 5%

Over $150,000

Not eligible

*Spouses/civil union partners who file separate income tax returns but maintain the same principal residence must combine their incomes when calculating the benefit amount. If spouses/civil union partners maintain separate principal residences, their incomes should not be combined.

**The benefit amount cannot be more than the amount of property taxes actually paid.

Note: Amounts received under the Homestead Benefit Program are in addition to the State’s other property tax relief programs. The total amount of all property tax relief benefits received (homestead benefit, property tax reimbursement, property tax deduction for senior citizens/disabled persons, and property tax deduction for veterans) cannot exceed the amount of property taxes paid on the applicant’s principal residence for the same year.

Information for Homeowners Under Age 65 and NOT Disabled

Last Updated: Wednesday, 08/05/15

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