How Homestead Benefits are Calculated
We will calculate your benefit using the 2006 property taxes for the home that was your principal residence on October 1, 2016. If no property taxes were assessed on the residence for 2006, we will determine the amount of property taxes that would have been due by using the current assessed value and the 2006 property tax rate.
Your 2016 Homestead Benefit is based on your:
- 2016 New Jersey Gross Income;
- 2016 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, 2016); and
- Property taxes paid in 2006 on your principal residence.
| If your 2016 New Jersey Gross Income* is... | Your benefit payment**, according to the FY2019 Budget appropriation is calculated by … |
| Not over $100,000 | Multiplying the amount of your 2006 Property Taxes paid (up to $10,000) by 5% |
| Over $100,000 But not over $150,000 | Multiplying the amount of your 2006 Property Taxes paid (up to $10,000) by 2.5% |
| 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 2016 New Jersey Income Tax return will have their Property Tax Credit included with the Homestead Benefit.
| If your 2016 New Jersey Gross Income* is... | Your benefit payment**, according to the FY2019 Budget appropriation is calculated by … |
| Not over $50,000 | Multiplying the amount of your 2006 Property Taxes paid (up to $10,000) by 5% |
| Over $50,000 But not over $75,000 | Multiplying the amount of your 2006 Property Taxes paid (up to $10,000) by 3.335% |
| 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: Monday, 09/17/18
