Residents of New Jersey that pay property tax on the home they own or rent, may qualify for a refundable tax credit or a deduction on their return. You may claim only one of the benefits. See Eligibility Requirements.
Property Tax Deduction
The deduction will reduce the taxable income used to calculate your tax. The deduction amount is determined based on your taxable income. filing status, and the amount of property tax paid. Homeowners may be able to deduct the lesser of all of your property tax or $15,000. Renters can calculate 18% of the rent as property taxes paid.
Property Tax Credit
The property tax credit is a $50 refundable credit. This will reduce your tax liability or increase your refund.
To enter this credit within your New Jersey return, follow the steps below:
- State Section
- Edit (pencil)
- Property Tax Credit/Deduction