TAX DEDUCTIONS AND EXEMPTIONS

Non-Profit Organization's Property Tax Exemption

Non-profit entities may include religious, charitable, and educational organizations. Since eligibility criteria vary, contact your tax assessor with any specific question you have about this exemption.

This Property Tax exemption is determined by:

  • Incorporation of the organization or its authorization to operate in New Jersey;
  • The organization's purpose;
  • The absence, presence, degree and use of profits;
  • The property's use and ownership as of October 1 of the pretax year;
  • Land area or existing buildings;
  • Timely application as of November 1 of the pretax year.

Acceptable documentation:

  • Articles of Association/Charter or Mission Statement;
  • Association's By-Laws;
  • Certificate of Incorporation;
  • Deed;
  • Calendar of events or promotional literature;
  • Lease/rental Agreements;
  • Proof of income (financial statements, tax returns, etc.).


    How to Apply:

    To apply for this program, file Form I.S.  and all supporting documents with your tax assessor. Once your application is approved, you will have to file Form F.S.  every three years to maintain the exemption.

    Resources


Farmland Assessment

Tax assessors determine which land qualifies as farmland. The State Farmland Evaluation Committee annually sets values for agricultural productivity that assessors must use to determine the farmland's value.

Accepted Agricultural/Horticultural Practices under Farmland Assessment

The State Department of Agriculture has provided advisory guidelines  that describe generally accepted agricultural/horticultural practices. These guidelines may be used by tax assessors and other tax officials to assist in determining whether land is actively devoted and meets the requirements for Farmland Assessment.

Application Forms

File the Application For Farmland Assessment (Form FA-1  and the Supplemental Farmland Assessment Form (FA-1 G.S.  with your tax assessor on or before August 1. If woodland is included in the acreage, then you also must file the Woodland Data Form (Form WD-1  with the other forms.

Criteria for Eligibility

  • You must own at least 5 contiguous acres devoted to agricultural/horticultural use;
  • Land must be devoted to agricultural/horticultural uses for at least two consecutive years prior to the tax year;
  • You must apply for Farmland Assessment with the tax assessor on or before August 1 of the pretax year;
  • Land must continue in agricultural/horticultural use to the end of the tax year for which application is made;
  • Gross sales of crops or livestock must total at least $1,000 per year for the first 5 acres, plus $5 per acre for each additional acre;
  • Gross sales of woodland/wetland under a Woodland Management Plan must total at least $500 per year for the first 5 acres, plus 50 cents per acre for any additional acres;
  • For farm management units less than 7 acres, a descriptive narrative of agricultural/horticultural uses, a sketch of their location, and number of acres actively devoted is required.

Denial and Appeal Rights

On or before November 1 of the pretax year, your assessor must send you a notice if you are denied Farmland Assessment. The Notice must state the reason(s) for the denial and inform you of your right to appeal to the County Board of Taxation.

If your application is denied, you can file Appeal Form A-1  with the County Board of Taxation on or before the next April 1.

If you are dissatisfied with the decision of the County Board of Taxation, you may appeal to the Tax Court of New Jersey.

Resources

Read the materials below for more information:

Roll-Back Taxes

If land use changes, from agricultural/horticultural to non-farm, roll-back taxes are assessed.

Roll-back taxes:

  • Are applied for the year the change takes place and the two previous years, provided the land was farmland assessed during that time;
  • Are the difference between the amount assessed for qualified farmland and the amount assessed for non-farmland in the taxing district;
  • Become a lien on the land from January of the year in which the roll-back judgment is rendered by the County Board of Taxation;
  • Are not generated when a new owner continues to actively use the property as farmland.

Cropland, woodland or livestock farming having no planned activity or inadequate devotion to agricultural/horticultural use may lose Farmland Assessment.

Farmland Data 

FEC values for Farmland Assessment
FEC Booklet for Productivity Values
Farmland Data Report

Woodlands

Non-appurtenant woodland is land neither supportive nor subordinate to other farmland.

  • It can only qualify for Farmland Assessment on the basis of being in compliance with a Woodland Management Plan;
  • This plan must be filed with the New Jersey Department of Environmental Protection;
  • Non-appurtenant woodland is actively devoted to the production of tree and forest products.

Appurtenant woodland is land that is next to, or part of, or beneficial to a tract of land.

  • The tract of land must have a minimum of at least 5 acres devoted to agricultural/horticultural uses;
  • These uses must be other than the production of trees and forest products (excluding Christmas trees), to which the tract of land is supportive and subordinate

Woodland Management Plan

If you own non-appurtenant woodland, you are required to have a Management Plan. This plan is:

  • Usually drawn up by a professional forester; and
  • Approved by the New Jersey Division of Parks and Forestry, Department of Environmental Protection.

The Woodland Management Plan and all forms, including the FA-1GS, must be submitted to the tax assessor.

You must submit a copy of the following to the New Jersey Forest Service Regional Offices that serves the county in which the property is located:


Homestead Benefit Program

The Homestead Benefit program provides property tax relief to eligible homeowners. For most homeowners, the benefit is distributed to your municipality in the form of a credit, which reduces your property taxes

NJ Division of Taxation - Homestead Benefit Program (state.nj.us)


Senior Freeze (Property Tax Reimbursement)

The Senior Freeze Program reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence (main home). To qualify, you must meet all the eligibility requirements for each year from the base year through the application year.

All property tax relief program information provided here is based on current law and is subject to change.


Senior Citizen Deduction or Disabled Deduction

 $250 Senior Citizens and Disabled Persons Property Tax Deduction

If you are age 65 or older, or disabled, and have been a New Jersey resident for at least one year, you may be eligible for an annual $250 property tax deduction.

You also may qualify if you are a surviving spouse or civil union partner.

Eligibility Requirements and Income Guidelines

You must be age 65 or older, or disabled (with a Physician’s Certificate or Social Security document) as of December 31 of the pretax year.

To qualify, you must:

Eligibility Requirements for Surviving Spouse/ Civil Union Partner

You may be eligible for the deduction when your spouse passes away .

  • The deduction must be on the same home for which the deceased spouse received the deduction in his/her lifetime;
  • You must be age 55 or older at the time of the deceased spouse’s death;
  • You must be age 55 or older as of December 31 of the pretax year.

To qualify you must:

  • Be a New Jersey resident and citizen for at least one year prior to October 1;
  • File a timely application;
    • Have owned and occupied your home for at least one year prior to October 1;
    • Provide proof that your spouse/civil union partner is deceased;
    • Have not remarried or formed a new registered civil union partnership;
    • Have not exceeded the income threshold (see Income Guidelines for Real Property Tax Deductions ).

Acceptable Documentation (Documentary Proofs)

  • Birth Certificate;
  • Death Certificate;
  • Deed;
  • Marriage/Civil Union Certificate;
  • New Jersey Driver’s License;
  • Physician’s Certificate;
  • Social Security Document;
  • State Tax Return;
  • Probated Will.

How to Apply

File Form PTD  and all documentary proofs with your local assessor or tax collector.

You will have to file Form PD5  with your tax collector every year, on or before March 1, to maintain the deduction.

How to Appeal if Your Application Is Denied

If your application is denied, you can file an appeal with the County Board of Taxation. File Form A-1  on or before April 1 following the denial.

Publications

For further information, please read:

New Jersey Property Tax Benefits: Are You Eligible? 

Veteran Deduction

 $250 Veterans Property Tax Deduction

Effective December 4, 2020, State law (P.L. 2019, c. 413) eliminates the wartime service requirement for the $250 Veterans Property Tax Deduction. Veterans must have active duty service with an honorable discharge. Reservists and National Guard personnel must be called to active duty service to qualify. Active duty for training continues to be ineligible.

If you are an honorably discharged veteran with active duty military service, you may qualify for an annual $250 Property Tax Deduction.

You also may qualify if you are a surviving spouse/civil union/domestic partner of an honorably discharged veteran with active duty military service.

Eligibility Requirements

With respect to the $250 Veterans Property Tax Deduction, the pretax year is October 1, 2020, with the deduction applied to the property taxes for Calendar Year 2021.

To qualify, as of October 1 of the pretax year, you must:

  • Be a legal resident of New Jersey;
  • Own the property;
  • Have active duty service in the United States Armed Forces with an honorable discharge.

Eligibility Requirements for Surviving Spouse/Civil Union/Domestic Partner

To qualify, as of October 1 of the pretax year, you must:

  • Be a legal resident of New Jersey;
  • Own the property;
  • Confirm the military service person died on active duty;
  • Demonstrate the deceased veteran had active duty service in the United States Armed Forces with an honorable discharge;
  • Document that the deceased veteran or military service person was a resident of New Jersey at the time of death;
  • Have not remarried or formed a new registered civil union/domestic partnership.

Acceptable Documentation (Documentary Proof)

  • Death Certificate;
  • Deed;
  • Probated Will;
  • Marriage/Civil Union/Domestic Partner Certificate;
  • Military Records (DD 214):
  • New Jersey Driver’s License;
  • New Jersey Voter’s Registration.

How to Apply:

File Form V.S.S.  and all documentary proofs with your local assessor or tax collector.

How to Appeal if Your Application Is Denied

If your application is denied, you can file an appeal with the County Board of Taxation. File Form A-1 on or before April 1, following the denial, or on or before January 15, for residents of Burlington, Gloucester, and Monmouth counties only.

Publications

New Jersey Property Tax Benefits Brochure 

Handbook for New Jersey Assessors (Chapter Four) 

Contact

If you have questions, call your local assessor or tax collector, or call the Division of Taxation at 609-292-7974.

If you need help documenting your veteran status, call:

100% Disabled Veteran Property Tax Exemption

Effective December 4, 2020, State law (P.L. 2019, c. 413) eliminates the wartime service requirement for the 100% Totally and Permanently Disabled Veterans Property Tax Exemption. Veterans must have active duty military service with an honorable discharge. Reservists and National Guard personnel must be called to active duty service to qualify. Active duty for training continues to be ineligible.

If you are an honorably discharged veteran who was 100% permanently and totally disabled during active duty service, you may qualify for an annual property tax exemption on your principal or primary residence (main home).

If you are a surviving spouse or civil union/domestic partner of an honorably discharged veteran who was 100% permanently and totally disabled during active duty service, you also may qualify.

Eligibility Requirements for Disabled Veterans

With respect to the 100% Totally and Permanently Disabled Veterans Property Tax Exemption, it can begin after December 3, 2020, assuming all other eligibility requirements are met. The U.S. Department of Veterans Affairs (Veterans Administration) Certificate of 100% Total and Permanent Disability while on Active Duty is still required by law.

To qualify, you must:

  • Have active duty service in the United States Armed Forces;
  • Be honorably discharged;
  • Be a legal resident of New Jersey;
  • Own and occupy the dwelling house as your main home and residence;
  • Provide a U.S. Department of Veterans Affairs (Veterans Administration) certification of active duty service-connected disability stating you are 100% permanently and totally disabled.

Eligibility Requirements for Surviving Spouse/Civil Union/Domestic Partner

To qualify, you must:

  • Be a legal resident of New Jersey;
  • Confirm the deceased veteran had active duty service in the United States Armed Forces;
  • Confirm the deceased veteran was honorably discharged or demonstrate the military service person died on active duty;
  • Document the deceased veteran or military service person was a New Jersey resident at death;
  • Have not remarried or formed a new registered civil union/domestic partnership;
  • Own and occupy the dwelling house as your main home and residence;
  • Provide a U.S. Department of Veterans Affairs (Veterans Administration) active certification of duty service-connected disability stating the deceased veteran was 100% permanently and totally disabled.

Acceptable Documentary Proof

  • Death Certificate;
  • Deed;
  • Probated Will;
  • Marriage/Civil Union/Domestic Partner Certificate;
  • Military Records (DD 214);
  • New Jersey Driver’s License;
  • Voter’s Registration;
  • Veterans Administration Certificate of Disability.

How to Apply

File D.V.S.S.E.  and all documentary proofs with your local assessor.

How to Appeal if Your Application Is Denied

If your application is denied, you can file an appeal with the County Board of Taxation. File Form A-1  on or before April 1, following the denial, or on or before January 15, for residents of Burlington, Gloucester and Monmouth counties only.

Publications

New Jersey Property Tax Benefits Brochure 

Handbook for New Jersey Assessors (Chapter Four) 

Contact

If you have questions, call your local assessor or call the Division of Taxation at 609-292-7974.

If you need help documenting your veteran status, call:

 Active Military Service Property Tax Deferment

If you are serviceperson, deployed or mobilized for active service in time of war, you may qualify for a deferment of your property tax bill. You may authorize someone to apply for the deferment on your behalf.

  • Once your deployment/mobilization is over, you have 90 days to pay your deferred property taxes;
  • This deferment does not include any tax payments that were delinquent prior to deployment or mobilization;
  • Interest on late deferral payments will be assessed back to their original due date;
  • Sewer, water, electric and other municipal charges may not be deferred;
  • If there is a mortgage on the property with an escrow account for property tax payments, contact your lender regarding the deferment.

Ownership

The deferment is limited to:

  • Property owned solely by the deployed or mobilized serviceperson;
  • Property owned together with a spouse/civil union partner.

The statute does not permit deferment for:

  • Property owned by the serviceperson and any other person;
  • Property owned by the serviceperson as a corporation, LLC, or partnership

Acceptable Documentary Proofs

  • A copy of military orders for deployment or mobilization;
  • A copy of the orders extending deployment or mobilization, if applicable
  • Certificate of Release or Discharge from Active Duty (DD 214)

Application

File Form AMSPTD  and all documentary proofs with the municipal tax collector. If someone is filing on your behalf, please have that person acknowledge and sign the form.

Resources

Handbook for New Jersey Assessors (Chapter Four)