NJ Income Tax - Property Tax Deduction/Credit
Eligible homeowners and tenants who pay property taxes, either directly or through rent, on their principal residence in New Jersey are eligible for either a deduction or a refundable credit on their New Jersey resident income tax return. Homeowners and tenants may be eligible for a deduction or credit even if they are not eligible for a homestead rebate. Qualified residents may deduct 100% of their property taxes due and paid or $10,000, whichever is less. For tenants, 18% of rent paid during the year is considered property taxes paid. The minimum benefit is a refundable credit of $50.
To determine whether you will receive a greater tax benefit by taking the deduction or credit, complete Schedule 1 contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040), unless you are claiming a credit for taxes paid to other jurisdictions. Complete Schedule A and Worksheet F if you claim a credit for taxes paid to another jurisdiction. If you are using NJ WebFile the program will determine the greater benefit for you.
Eligible residents who are 65 years of age or older or blind or disabled and who are not required to file a return because their income is below the minimum filing threshold apply for the credit as follows:
Additional information on the property tax deduction or credit is contained in the resident income tax instruction booklet.
To determine whether you will receive a greater tax benefit by taking the deduction or credit, complete Schedule 1 contained in the New Jersey Resident Income Tax Return instruction booklet (Form NJ-1040), unless you are claiming a credit for taxes paid to other jurisdictions. Complete Schedule A and Worksheet F if you claim a credit for taxes paid to another jurisdiction. If you are using NJ WebFile the program will determine the greater benefit for you.
Eligible residents who are 65 years of age or older or blind or disabled and who are not required to file a return because their income is below the minimum filing threshold apply for the credit as follows:
- Residents who file only the homestead rebate application will automatically receive their property tax credit with their homestead rebate. These residents should not complete Line 36c, Form NJ-1040 to claim a property tax deduction or Line 48, Form NJ-1040 to claim a property tax credit even if they file an income tax return..
- Residents who are not eligible for the homestead rebate because on October 1, 2008, they were neither homeowners nor tenants may complete the New Jersey income tax return to claim their property tax credit. Such taxpayers must complete Line 48, Form NJ-1040 to claim their property tax credit
Additional information on the property tax deduction or credit is contained in the resident income tax instruction booklet.
