The rebate calculation is based on the applicant's:

• 2007 New Jersey gross income,
• 2007 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, 2007),
• Property taxes paid in 2006 on principal residence.

The State Budget requires that the 2007 rebate be based on 2006 property taxes. For purposes of calculating the 2007 rebate, the 2006 property taxes for the dwelling that was the applicant’s principal residence on October 1, 2007, 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, 2007 rebate amounts will be no greater than those paid last year (when rebates were also based on 2006 property taxes) 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 2007 rebate.

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 rebate. 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
Homeowners Under Age 65 and NOT Disabled

*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. Each spouse/civil union partner is then eligible to receive one-half of the calculated 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.