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Division of Taxation

Property Tax Deduction/Credit

How to Determine the Amount of Property Taxes You Paid

Multiple Owners. If you owned your principal residence with someone who was not your spouse/civil union partner, only the amount of property taxes that reflects your percentage of ownership in the property, as shown on the deed of record, can be used when calculating the property tax deduction or credit. Example: You and your wife owned a single-family home with your sister. You lived in the home with your wife. Your sister did not live with you, and you and your wife paid all the property taxes. You can only claim one-half of the taxes paid because you and your wife owned only one-half (50%) of the property. To determine your share of the property taxes paid, use Worksheet G in the New Jersey Resident Income Tax Return instruction booklet. Note: The taxes must be apportioned even if only one of the owners occupies the property and pays all of the taxes.

Multi-Unit Properties. If you owned a multi-unit property and occupied a portion of the property as your principal residence, only the amount of property taxes paid for the unit that you occupied as your principal residence can be used when calculating the property tax deduction or credit. The taxes must be apportioned equally among the number of units, unless the local tax assessor has determined that the units are not equal in size. Example: You owned a four-unit property. The units were equal in size, and one of the units was your principal residence. You must enter one-fourth of the taxes paid because you occupied one-fourth (25%) of the property as your principal residence. Use Worksheet G in the New Jersey Resident Income Tax Return instruction booklet to determine the amount. Note: A condominium unit or a unit in a cooperative housing complex or mutual housing corporation is considered a single-family dwelling.

Multiple Tenants. If you occupied and shared rent for an apartment or other rental dwelling unit with someone who was not your spouse/civil union partner, use only your share of the rent constituting property taxes paid when calculating the property tax deduction or credit. To determine the amount, use Worksheet G in the New Jersey Resident Income Tax Return instruction booklet. Note: For tenants, 18% of the rent paid during the year is considered property taxes paid.

Multiple Residences. If you lived in more than one New Jersey residence during the year, you must determine the total amount of property taxes (and/or 18% of rent) to use when calculating the property tax deduction or credit by completing Worksheet G in the New Jersey Resident Income Tax Return instruction booklet.

Part-Year Residents. If you were a part-year New Jersey resident, and you were either a qualified homeowner or tenant, or both a homeowner and a tenant during the part of the year you lived in New Jersey, use the amount of property taxes (or 18% of rent) due and paid during your period of residence. Note: Use Worksheet G and Worksheet H in the New Jersey Resident Income Tax Return instruction booklet to determine the total amount of property taxes to use when calculating the property tax deduction/credit.

File Separate Returns but Maintain Same Principal Residence. If you and your spouse/civil union partner file separate returns but maintain the same principal residence, only one-half of the property taxes (or one-half of 18% of rent) due and paid can be used when calculating the property tax deduction or credit.

Senior Freeze Applicants. When calculating the property tax deduction or credit for Tax Year 2023, do not use the amount of property taxes (or mobile home site fees) paid for 2023. You must use the amount reported on your Property Tax Reimbursement (Senior Freeze) application as follows:

  • Form PTR-1. Use the amount of your 2022 property taxes as reported on your 2023 Property Tax Reimbursement Application, Form PTR-1. (For mobile home owners, this is 18% of 2022 site fees.)
  • Form PTR-2. Use the amount of your base year property taxes as reported on your 2023 Property Tax Reimbursement Application, Form PTR-2. (For mobile home owners, this is 18% of base year site fees.)

Additional information on the deduction or credit is contained in the New Jersey Resident Income Tax Return instructions.


Last Updated: Monday, 12/04/23