Homestead Benefit Program for Senior Citizens and Disabled Persons (Circuit Breaker)

State

New Jersey

Year

2021

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

Benefits are based on property taxes paid in 2006 up to a maximum of $10,000 and are determined by a sliding scale of relief based on income. For homeowners 65 and over or those who are disabled, income cannot exceed gross income of $150,000. For those with income below $100,000, tax relief is 5% of property taxes paid and 2.5% for those with income between $100,001 and $150,000. The benefit amount cannot exceed the the property taxes actually paid. The rebate lags by several years as a result of past budget issues. Applications for the 2017 Senior and Disabled Homestead Benefit (paid in 2021) are due by November 30, 2020. A rebate equal to 2.5% (for 2017 incomes of $100,000 or less) or 5% (for 2017 incomes between $100,001 and $150,000) of property taxes paid in 2006 will be paid in May 2019 based upon FY 2019 appropriations. Applications can be made online or by calling the state Department of the Treasury.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property that is the taxpayer's permanent residence is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Description of Eligibility Criteria

For homeowners age 65 or older, blind, or disabled. An applicant's household income cannot exceed $150,000.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

State provides the full funding for the credit.

Record ID

NJ107_RR21

Footnotes

The filing deadline for 2016 tax year is in Nov. 30 2019. Benefits are paid out in 2020. The filing deadline for the latest Homestead Benefit Application - Tax Year 2018 - is November 30, 2021. Deadline to file latest Homestead Benefit application was December 2019 for TY 2017. Have to wait later on in the year for the 2018 application to open.

Sources

N.J. Rev. Stat. §54:4-8.59 ~ § 54:4-8.60 (in effect for 2021)
New Jersey Department of the Treasury, Division of Taxation, Homestead Benefit Program Website, (2021)
[https://www.state.nj.us/treasury/taxation/pdf/homestead/hownerappins.pdf Accessed 12/22/2022]
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