The New Jersey Homestead Benefit is a credit available to taxpayers owning a home who are 65 years of age or older or disabled. This taxpayer benefit has been available for many years and is based on a percentage of the property tax paid a few years prior to submission of the application. For example, if a taxpayer was deemed eligible, the most recent credit, the 2014 Homestead Benefit, was calculated based on the property taxes paid on a personal residence in 2006. In general, the Homestead credit is calculated based on the taxpayer’s New Jersey gross income, filings status, and age/disability status.
On July 13, 2017 the state of New Jersey has advised all participants in this program that this credit will now appear as a reduction on the property tax bill versus a check sent in the mail. Going forward an eligible taxpayer for a 2014 Homestead benefit calculated above should see the credit as a reduction of the May 2017 property taxes. If a taxpayer is expecting a credit and does not see it on their bill they should contact their local tax office.