NJ Income Tax – Property Tax Deduction/Credit Eligibility Requirements
All property tax relief program information provided here is based on current law and is subject to change.
You are eligible for a property tax deduction or a property tax credit only if:
- You were domiciled and maintained a primary residence as a homeowner or tenant in New Jersey during the tax year; and
- Your primary residence , whether owned or rented, was subject to property taxes, that were paid either as actual property taxes or through rent; and
- If you rented your primary residence , it had its own separate kitchen and bathroom that you did not share with occupants of other units in the building, if there were other units;
- If your primary residence was a unit in a multi-unit property you owned, the property had no more than four units and no more than one of those was a commercial unit;
- Your gross income is more than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return), or you (and/ or your spouse/civil union partner if filing jointly) were 65 or older or blind or disabled on the last day of the tax year.
Note: Residents with gross income of $20,000 or less ($10,000 if filing status is single or married/CU partner, filing separate return) are eligible for a property tax credit only if they were 65 years or older or blind or disabled on the last day of the tax year.
Review the information on determining the amount of property taxes to use when calculating your deduction or credit if any of these circumstances apply to you:
- Multiple Owners. You shared ownership of your primary residence with anyone other than your spouse/civil union partner;
- Multiple Units. Your primary residence was a unit in a multi-unit property you owned;
- Multiple Tenants. You occupied and shared rent for an apartment or other rental dwelling unit with anyone other than your spouse/civil union partner;
- Multiple Residences. You had more than one New Jersey residence during the tax year;
- Part-Year Residents. You lived in New Jersey for only part of the year;
- File Separate Returns but Maintained Same Primary Residence. You and your spouse/civil union partner file separate tax returns but maintained the same primary residence ;
- Senior Freeze Applicants. You file a Senior Freeze (Property Tax Reimbursement) application for the same year.
You are not eligible unless you are required to pay property taxes on your home. For example, you are not eligible if:
- You are completely exempt from paying property taxes on your primary residence (such as certain totally and permanently disabled war veterans).
- You made P.I.L.O.T. (Payments-in-Lieu-of-Tax) payments to your municipality. These payments are not considered property taxes.
- You rented a residence that was exempt from local property taxes or on which P.I.L.O.T. (Payments-in-Lieu-of-Tax) payments were made to the municipality.
For more information on the property tax deduction or credit, see the New Jersey Resident Income Tax Return instructions.