The average 2019 property tax bill in New Jersey is $9,000. The New Jersey Homestead Benefit Program provides property tax relief to eligible homeowners in the form of a property tax credit that the state pays to municipalities on behalf of eligible homeowners to reduce their tax liability. New Jersey Governor Murphy froze the May 1, 2020, Homestead Benefit Program payment in the midst of the COVID-19 pandemic and then cut the program by $142 million. The program was restored in the approved budget that went into effect on October 1, 2020. The 2021 property tax credits are based on one’s 2017 income and property taxes paid. Benefits are expected to be credited to eligible taxpayers in two payments – first in February 2021 and the second payment in May.

Determine if You Are Eligible for NJ Property Tax Relief 

To be eligible for 2021 property tax relief in New Jersey via the Homestead Benefit Program, you must meet all the following requirements:

  • You were a New Jersey resident;
  • You owned and occupied the home on October 1, 2017;
  • Your 2017 property taxes were paid in full;
  • The house was your primary residence (not a vacation home, second home, or investment property); and
  • You meet the income requirements:
    • $150,000 or less if you are age 65 or older, blind, or disabled; or
    • $75,000 or less if you are under age 65 and not blind or disabled.

How Property Tax Credits Are Calculated

To determine the amount of the property tax rebate you will qualify for, you need the following information:

  • 2017 New Jersey gross income (from line 28 of Form 1040);
  • 2017 New Jersey tax filing status (single, married, filing jointly, head of household, etc.);
  • Property taxes paid in 2006; and
  • Age/disability status.

The calculation is as follows:

Age 65 and over, blind or disabled

Income LevelCalculation
Income greater than $150,000Not eligible
Income between $100,000 and $150,0002006 Property Tax (max of $10,000) * 2.5%
Income less than $100,0002006 Property Tax (max of $10,000) * 5.0%

Age 65 and under (and not disabled or blind)

Income LevelCalculation
Income greater than $75,000Not eligible
Income between $50,000 and $75,0002006 Property Tax (max of $10,000) * 2.5%
Income less than $50,0002006 Property Tax (max of $10,000) * 5.0%

 

How to File for Property Tax Relief and Check Your Status

The deadline for filing for the 2017 Homestead Rebate was December 2, 2019.

If you need to check the status of your homestead benefit for benefit years 2016, 2015, or 2014, click here. To check the status of your homestead rebate for 2017, call 877-658-2972.

We do not yet know if there will be a property tax rebate for 2018, as the credits are usually a few years behind. We will continue to monitor the situation and will update you as soon as possible.

For frequently asked questions and to learn more about property tax relief through the Homestead Benefit Program, please visit the State of New Jersey website.