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Division of Taxation

How Homestead Benefits Are Paid

Credit on Property Tax Bill. Most recipients get a credit on their tax bills. Your tax collector issues you a property tax bill or advice copy reflecting the amount of your benefit.

Check or Direct Deposit. You will receive a check or direct deposit only if:

  • Your home was a unit in a co-op or a continuing care retirement community; or
  • You indicated that you no longer owned your home.

If you sold your home or plan to close on the sale on or before December 2, 2019:

When filing the Homestead Benefit application, if you no longer own the home that was your principal residence on October 1, 2017, or you plan to close on or before December 2, 2019, you must answer "No" to the question which asks whether you still own the property, or you risk losing your benefit.


If you sell your home after filing your application:

The Homestead Benefit will reduce the tax bill of the person who owns the property on the date the benefit is paid. This means that if you indicated you still own the home when filing your application, and later sell it, the only way to receive your 2017 Homestead Benefit is to take credit for the benefit at the closing of your property sale. If you plan to sell your home, discuss these instructions with your attorney or closing agent so they can negotiate on your behalf.


Estates

If you filed on behalf of an estate, we will issue the approved check in the name of the estate. Due to the timing of when a check may be issued, you should speak to your bank and/or seek guidance from your attorney prior to closing the estate bank account.


Set-Off Program

Under New Jersey law, if you owe money to New Jersey, any of its agencies, or the Internal Revenue Service, we will deduct it from your Homestead Benefit. If we apply your benefit to any of these debts, we will notify you by mail.


Last Updated: Tuesday, 07/06/21