NJ Property Tax Relief in a Nutshell

Reducing Property Taxes NJ Property Tax Relief in a Nutshell

NJ Property Tax Relief—A Relief for Your Wallet

Property tax relief comes in different shapes and forms in New Jersey—it can be a tax freeze, a deduction, or a benefit program. NJ also provides various property tax exemptions you can apply for to lower your taxes.

This article will go over all NJ property tax relief programs and recommend a personalized guide to help you keep your NJ property tax low.


Why Is Property Tax So High in NJ, and Why Do I Pay for It?

Unlike Hawaii, Alabama, and Colorado, which are states with the lowest property taxes, New Jersey has one of the highest tax rates in the country—2.19%. To put this in perspective, the average NJ citizen paid approximately $8,861 in taxes in 2019.

The main reasons behind the steep rates are high property values and education costs. Besides education, property taxes in NJ also fund:

  • Maintenance services
  • Community services
  • Police departments
  • County and municipal expenses

What Are New Jersey Property Tax Relief Programs?

As one of the most expensive states to live in, NJ citizens may need help paying property taxes to keep up with the high cost of living. One way of saving a penny or two is by applying for NJ property tax relief programs, such as:

  1. Senior freeze program
  2. Homestead benefit program
  3. Deductions, exemptions, and abatements

Do I Qualify for NJ Tax Relief Programs?

Check out an overview of New Jersey property tax relief programs in the table below:

Program Eligibility Factors Details

Senior freeze

  1. Age/disability:
    • Be 65 or older or
    • Receive federal Social Security disability benefit payments 
  2. Residence—Live in New Jersey as a renter or a homeowner 
  3. Homeownership:
    • Be a homeowner
    • Be a mobile homeowner
  4. Income limit:
    • Earn $91,505 or less in 2019
    • Earn $92,969 or less in 2020
  5. Property taxes and site fees:
    • Have paid property taxes on your home or
    • Have paid site fees on your mobile home
  • The senior freeze program provides reimbursements for tax increases to senior citizens and disabled persons
  • You can’t qualify for a reimbursement if you have a:
    • Property that you’re renting to someone
    • Vacation home or a second home
    • Property with four units or less that has more than one commercial unit
    • Property that has more than four units

Homestead

  1. Be a New Jersey resident
  2. Own and occupy a home as your primary residence in NJ
  3. Pay your property taxes
  4. Meet the income requirements:
    • $150,000 or less for homeowners aged 65 or over, blind, or disabled
    • $75,000 or less for homeowners under the age of 65 and not blind or disabled
  • The homestead benefit program offers property tax relief to eligible homeowners
  • The relief typically comes as a credit that will reduce your property taxes

New Jersey Property Tax Reduction Through Exemptions and Deductions

Aside from tax relief programs, you may be eligible for property tax exemptions in NJ. There are four main tax exemptions we will get into in detail:

  1. Veteran property tax deduction
  2. Active military service property tax deferment
  3. 100% disabled veteran property tax exemption
  4. Property tax deduction for senior citizens and disabled persons

Veteran Property Tax Deduction

To qualify for a veteran property tax deduction, you need to meet the following criteria:

  1. Being a homeowner
  2. Being a legal resident of New Jersey
  3. Having active duty service in the U.S. Armed Forces with an honorable discharge

A surviving spouse, civil union, or domestic partner may also be eligible for this exemption.

Active Military Service Property Tax Deferment

As a serviceperson, deployed or mobilized for active service in time of war, you may qualify for the active military service property tax deferment. This is essentially a postponement of your tax bill. You can authorize someone to apply instead of you. As soon as your deployment is finished, you have 90 days to pay your property taxes.

100% Disabled Veteran Property Tax Exemption

To apply for the 100% disabled veteran property tax exemption, you have to:

  1. Be honorably discharged
  2. Be a legal New Jersey resident
  3. Have active duty service in the U.S. Armed Forces
  4. Own and occupy your property as your primary residence

Spouses may also apply.

Property Tax Deduction for Senior Citizens and Disabled Persons

You may qualify for an annual $250 property tax deduction for senior citizens and people with disabilities if you:

  1. Own and occupy your home
  2. Don’t exceed the income threshold
  3. Have been a legal resident of New Jersey for at least one year

You may also be eligible when your spouse passes away.

Other programs also include:

  • Historic site property tax exemption
  • Five-year exemption and abatement
  • Urban enterprise zone property tax abatement
  • Non-profit organization’s property tax exemption
  • Renewable energy system property tax exemption
  • Environmental opportunity zone property tax exemption
  • Non-residential development fee certification/exemption
  • Automatic fire suppression system property tax exemption

NJ Property Tax Reduction Made Easy With DoNotPay

If your head is already spinning from all the tax relief programs and exemptions you may qualify for, and the thought of collecting the necessary paperwork is giving you a headache, we have a solution! DoNotPay can comprise a detailed property tax guide that will help you:

With our guide, dealing with exemptions and appeals will be a piece of cake!

Reduce your property taxes by getting our guide in the following way:

  1. Open DoNotPay in any web browser
  2. Navigate to the Property Tax feature
  3. Answer a few questions about yourself and your property

Use Our Robot Lawyer To Eliminate Pesky Tasks

Administrative tasks are often time-consuming, which is why many people give up on them before even trying to tackle them. Requesting refunds, canceling services, signing up for clinical trials, reporting stalkers and robocalls, and trying to find unclaimed money are all processes that would usually take a long time to resolve.

With the help of DoNotPay, though, all of these admin hurdles become a piece of cake. In just a few minutes, our app can assist you in appealing parking tickets, getting in touch with your imprisoned loved one, getting an extended warranty, reporting copyright infringement, and so much more!

Don’t Break the Bank—Sign Up for DoNotPay!

Our app can save you lots of money by helping you get a refund from any airline, sign up for a free trial without your credit card info, earn off persistent and illegal spam emails, and get an application fee waiver for a college you apply to.

With DoNotPay, you can even schedule a DMV appointment or jump the phone queue when getting in touch with a customer service representative without breaking a sweat!


Want your issue solved now?