Bill
Bill > S3261
NJ S3261
NJ S3261Increases maximum gross income tax deduction for homestead property taxes paid to $25,000.
summary
Introduced
02/02/2026
02/02/2026
In Committee
02/02/2026
02/02/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill increases the maximum gross income tax deduction allowed for homestead property taxes paid. Currently, a resident taxpayer is allowed a deduction from gross income for property taxes paid for the calendar year on the taxpayer's principal residence in the State, up to a maximum deduction of $15,000. Similarly, a resident taxpayer that rents or leases a unit of residential property that is the taxpayer's principal residence is allowed to deduct from gross income 18% of the rent paid for occupancy during the taxable year, up to a maximum deduction of $15,000 for rent constituting property taxes. Current law also provides that a taxpayer who is eligible for a deduction for property taxes paid for part of the year, and also eligible for a deduction for rent constituting property taxes paid for part of the year is allowed to deduct the sum of the property taxes paid and the rent constituting property taxes paid, subject to certain limitations, up to a maximum deduction of $15,000. This bill raises the amount of the maximum deduction from gross income allowed for homestead property taxes paid in each of the three provisions to $25,000 in recognition of the reality that property taxes and rents have become an ever-increasing burden on New Jersey families.
AI Summary
This bill increases the maximum amount of homestead property taxes that New Jersey residents can deduct from their gross income on their tax returns from $15,000 to $25,000, recognizing that property taxes and rents have become an increasing burden on families. This applies to homeowners who pay property taxes directly on their principal residence, as well as to renters who can deduct a portion of their rent that represents property taxes paid by their landlord. The bill also clarifies that if a taxpayer pays property taxes for part of the year and rent constituting property taxes for another part of the year, the combined deduction is also capped at $25,000. The "New Jersey Gross Income Tax Act" is the law governing income taxes in the state, and "gross income" refers to all income received from any source.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/02/2026)
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/S3261 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3261_I1.HTM |
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