Bill
Bill > A2684
NJ A2684
NJ A2684Increases, from 18 percent to 30 percent, amount of rent constituting property taxes for purposes of gross income tax deduction for certain tenants.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill revises a provision of the "Property Tax Deduction Act," P.L.1996, c. 60 (C.54A:3A-15 et seq.) that would provide additional income tax relief by increasing, from 18 percent to 30 percent, the amount of rent defined as "rent constituting property taxes" for tenants with annual gross incomes of $150,000 or less, while maintaining the amount of rent defined as "rent constituting property taxes" as 18 percent of rent paid during the taxable year for tenants with annual gross incomes over $150,000. Under the "Property Tax Deduction Act," a taxpayer is entitled to a deduction of up to $15,000 from gross income for property taxes, or the rental equivalent thereof paid by tenants, due and paid for that calendar year on a taxpayer's homestead. For tenants, the amount of the deduction is based on the amount of "rent constituting property taxes." Current law sets the amount of rent constituting property taxes at 18 percent of the rent paid by the taxpayer for the occupancy, during the taxable year, of a unit of residential real property which the taxpayer occupies a principal residence. The bill would increase the amount of rent constituting property taxes for tenants with annual gross incomes of $150,000 or less from 18 percent of rent paid to 30 percent of rent paid for occupancy during the taxable year, while maintaining the amount of rent constituting property taxes for tenants with annual gross incomes over $150,000 as 18 percent of rent paid by the taxpayer for occupancy during the taxable year. Increasing the cap on the amount of rental payments defined as rent constituting property taxes for those with annual gross incomes of $150,000 or less would allow eligible taxpayers to deduct a higher amount of rent from their gross income, thereby lowering the amount of gross income subject to taxation and reducing a tenant's tax burden.
AI Summary
This bill amends the "Property Tax Deduction Act" to increase the portion of rent that tenants can consider as property taxes for the purpose of claiming a gross income tax deduction. Specifically, for tenants with an annual gross income of $150,000 or less, the amount of rent considered "rent constituting property taxes" will increase from 18% to 30% of the rent paid. For tenants with an annual gross income exceeding $150,000, this percentage will remain at 18%. This change aims to provide additional income tax relief to eligible tenants by allowing them to deduct a larger amount of their rent, thereby reducing their taxable income and overall tax burden. The bill takes effect immediately and applies to taxable years beginning on or after January 1 of the following year.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A2684 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2684_I1.HTM |
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