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Division of Taxation

How Homestead Benefits Are Calculated

We will calculate your benefit** using the 2017 property taxes for the home that was your principal residence on October 1, 2018. If no property taxes were assessed on the residence for 2017, we will determine the amount of property taxes that would have been due by using the current assessed value and the 2017 property tax rate.

Your 2018 Homestead Benefit is based on your:

  • 2018 New Jersey gross income;
  • 2018 filing status (single; married, filing jointly; head of household; etc.);
  • Age/disability status (whether you were 65 or older and/or blind or disabled on December 31, 2018); and
  • Property taxes paid in 2017 on your principal residence.

Age 65 or Older and/or Disabled Homeowners

If your 2018 New Jersey Gross Income* is... Your benefit payment**, according to the FY2022 Budget appropriation is calculated by ?
Not over $100,000 Multiplying the amount of your 2017 property taxes paid (up to $10,000) by 10%
Over $100,000 But not over $150,000 Multiplying the amount of your 2017 property taxes paid (up to $10,000) by 5%
Over $150,000 Not eligible

*The income amounts apply to a single individual, a married/civil union couple living in the same residence, and married/civil union partners maintaining separate residences.

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

Amounts you receive 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 you receive (Homestead Benefit, Senior Freeze, Property Tax Deduction for senior citizens/disabled persons, and Property Tax Deduction for veterans) cannot be more than the property taxes paid on your principal residence for the same year.

If we send you a benefit that is larger than the amount you are eligible to receive, you must repay any excess. We can deduct any amount you owe from future Homestead Benefits or Income Tax refunds or credits before we issue the payment.

Certain senior/disabled homeowners who were not required to file a 2018 New Jersey Income Tax return will have their Property Tax Credit included with the Homestead Benefit.


Under Age 65 and not Disabled Homeowners

If your 2018 New Jersey Gross Income* is... Your benefit payment**, according to the FY2022 Budget appropriation is calculated by ?
Not over $50,000 Multiplying the amount of your 2017 Property Taxes paid (up to $10,000) by 10%
Over $50,000 But not over $75,000 Multiplying the amount of your 2017 Property Taxes paid (up to $10,000) by 6.67%
Over $75,000 Not eligible

*The income amounts apply to a single individual, a married/civil union couple living in the same residence, and married/civil union partners maintaining separate residences.

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

Amounts you receive 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 you receive (Homestead Benefit, Senior Freeze, Property Tax Deduction for senior citizens/disabled persons, and Property Tax Deduction for veterans) cannot be more than the property taxes paid on your principal residence for the same year.

If we send you a benefit that is larger than the amount you are eligible to receive, you must repay any excess. We can deduct any amount you owe from future Homestead Benefits or Income Tax refunds or credits before we issue the payment.


Last Updated: Friday, 07/16/21