New Jersey renters could count more rent toward tax deductions

The bill would count 30% of rent as rent paid toward property taxes. The rent must be for a home the taxpayer occupies as their main residence. This includes a manufactured home in a mobile home park. This calculation applies when figuring the property tax deduction for eligible gross income taxpayers. The bill would take effect immediately upon enactment and apply to taxable years ending after enactment.

The bill would raise the optional property tax credit from $50 to $250. The option is for New Jersey gross income taxpayers and certain residents age 65 or older, blind, or disabled who are not subject to that tax. Eligible people may choose the credit instead of the property tax deduction. A person must have paid property taxes or qualifying rent on a home during the calendar year. Residents age 65 or older, or who qualify as blind or disabled, may also qualify if they are not subject to gross income tax. They must apply each year. The bill would take effect immediately upon enactment and apply to taxable years ending after enactment.