Rebates

PTR - Property Tax Reimbursement (Senior Freeze)

Homeowners, including owners of mobile homes located in mobile home parks, age 65 or older, or receiving Federal Social Security disability benefits, who paid property taxes on their principal residence in New Jersey either directly or through mobile home park site fees. Applicants must be New Jersey residents for at least 10 years and lived in the home for which reimbursement is claimed for the last 3 years, and must meet certain income limits. The Tax Verification form in this packet is completed by the Tax Collector.

NJ Homestead Credit/Rebate

The Homestead Rebate Program provides rebates for homeowners and tenants who occupied their principal residence in New Jersey on October 1, paid property taxes on that dwelling either directly or through rent, and whose gross income for the entire year does not exceed certain limits.

Only New Jersey residents who were either homeowners or tenants on October 1, 2007, are eligible for a 2007 homestead rebate. Homeowners and tenants file different applications according to their status on October 1:

  • Tenant: If you were a tenant on October 1, 2007, file a Form TR-I040, tenant homestead
    rebate application, contained in the 2007 resident income tax return booklet. More
    information for tenants.
  • Homeowner: If you were a homeowner on October 1, 2007, a 2007 homestead rebate application will be mailed to you. Homeowners do not file FormTR-1040, doing so will delay the payment of your homestead rebate. More information for homeowners.

If you were neither a homeowner nor a tenant on October 1, 2007, you are not eligible for a 2007 homestead rebate, even if you owned a home or rented a qualified dwelling for part of the year.

Homeowners must meet the following conditions to be eligible for a 2007 Homestead Rebate:

  1. Own and occupy a home in New Jersey that was their principal residence on October 1, 2007.
  2. Have gross income for 2007 of $150,000 or less. (This does not include income that is not subject to New Jersey gross income tax such as Social Security, Railroad Retirement benefits, or unemployment compensation.)
  3. The home must be subject to local property taxes, and 2007 property taxes must have been paid. However, the FY 2009 State BUdget requires that the 2007 rebate be calculated
    using 2006 property taxes.

For eligible homeowners with income of $100,000 or less, the rebate will be 20% of the first $10,000 in property taxes paid in 2006. Eligible homeowners with income between $100,001 and $150,000 will receive 10% of the first $10,000 of property taxes paid in 2006. Homeowners who were age 65 or older or disabled as of December 31, 2007, will receive the larger of either the amount determined by the percentage-of-property-taxes formula described above, or an amount determined under last year?s alternate rules. Those rules provide senior and disabled homeowners with rebates ranging from $500 to $1,200, depending on their income and the amount of 2006 property taxes. For purposes of calculating the 2007 rebate, the 2006 property taxes for the dwelling that was the applicant's principal residence on October 1, 2007, will be used. If no property taxes were assessed on that dwelling for 2006, the Division of Taxation will determine the amount of property taxes that would have been due for 2006.

The rebate amount you receive is determined by your age, disability and gross income. The benefit amount ranges from 10-20%.

The Property Tax Reimbursement and Homestead Rebate checks are mailed out from the State of New Jersey, Division of Taxation.

Additional Information

For more information about New Jersey property tax relief programs contact the State Department of Taxation

Online www.state.nj.us/treasury/taxation/relief.htm
Phone (homeowners) 1-888-238-1233
Phone (tenants) (609) 292-6400
Email www.state.nj.us/treasury/taxation/contactus_tythome.html
Visit a Regional Office www.state.nj.us/treasury/taxation/ot1.htm