This New Loophole Could Give New Jersey Homeowners Property Tax Relief

Residents of New Jersey could reap the benefits of a loophole on property taxes.
 /><figcaption>Residents of New Jersey could reap the benefits of a loophole on property taxes.</figcaption></figure>
<p><a <a href=New Jersey has never had the best reputation when it comes to taxes. According to USA Today, NJ residents pay out an average of 12.2 percent of their income to the government and Garden State property taxes are the highest in the nation ($8,700 on average).

This reputation predates the most recent round of tax laws enacted by Congress, which don’t do most New Jersey homeowners any favors. Because of the tax plan’s $10,000 cap on deductions for state and local income as well as state and property taxes, this would take another chunk of cash out of the pockets of homeowners. It would certainly affect plenty of 55+ residents. 

Earlier this month, however, New Jersey Governor Phil Murphy signed into legislation a new state law that allows homeowners to declare property taxes as charitable donations. That makes them deductible on your next IRS filing. Specifically, property owners will be able to “donate” as much as 90 percent of their property taxes in exchange for tax credits. For residents in Northern New Jersey, where a property tax bill exceeding $15,000 is not uncommon, this would be a welcome relief. 

The new law won’t go into effect for another two months. However, that gives the state government plenty of time to figure out how homeowners can choose to submit these taxes as charitable funds even though they’re often paid through a mortgage company. There’s also the tricky issue of whether or not the federal government and Internal Revenue Service will actually allow this tax loophole to stand. So far the reaction hasn’t been entirely positive.

New Jersey is following in the footsteps of New York, whose governor signed similar legislation into effect last month. Various states such as Connecticut and California are considering following suit. 

Thankfully, there are already multiple ways in which New Jersey provides tax relief to those 55+. The state’s homestead exemption includes a clause for senior homebuyers and the Property Tax Reimbursement Program (“Senior Freeze”) reimburses eligible senior citizens and disabled persons on property tax increases. Retirement funds, Social Security, Railroad Retirement benefits, and military pensions are also non-taxable in the state. 

If you’d like to learn more about local real estate taxes, you’ll find ways to do that here.

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

Share this post:

We're here to help! (800) 928-2055

Call us to speak with a customer service representative.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting [email protected] Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

The Best Places to Snowbird in 2021

We’ve gathered 25 of the best places for snowbirds, including cities in Florida, Arizona, California, Texas, South Carolina, and Nevada. For each entry, we’ve also provided a list of recommended 55+ communities in the area. If you’re ready to find your own winter retreat this season, here are some of the best places to consider.

The entrance sign at the Polo Club at Mountain Island Lake, a 55+ community in Charlotte, North Carolina

The Best Small Active Adult Communities in Charlotte

Charlotte, North Carolina is a top retirement destination for adults 55+. With 72 active adult communities in the area, there’s a lot to choose from and think about. If you’re considering a move to Charlotte and already know you’re looking for a small community in size but big on options, then we’ve got you covered.

Cresswind Charlotte is a 55+ community near Charlotte, North Carolina

The Best Communities for Downsizing in Charlotte, North Carolina

A smaller home has less space to clean and maintain–inside and out. They also typically come with a smaller, more affordable price tag. Fortunately for the 55+ crowd looking to downsize in the Charlotte area, there are several active adult communities that offer smaller floor plans at affordable price points.

A sunny day at Lake Walk Freedom Homes in Mooresville, North Carolina

55+ Communities Near Lakes in the Charlotte Area

Dreaming of spending your retirement on the water, boating, fishing, swimming, or just relaxing, soaking up the sun every day? Then, Charlotte, North Carolina should be on your radar.

The clubhouse at Village at Deaton Creek in Hoschton, Georgia

The Best Active Adult Communities in the Atlanta Area

The state of Georgia is a popular destination for 55+ active adults, and the Atlanta area is one of its hottest places to relocate. The city offers fine restaurants, diverse shopping opportunities, and impressive cultural attractions, as well as its own rich history and distinctive southern charm. If you are considering living near Atlanta, you’ll want to take a look at six of the area’s most popular active adult communities.

A happy group of elderly people living in a 55+ community meet the age requirements.

What Are the Age Requirements for a 55+ Community?

For many, the answer to “What are the age requirements for a 55+ community?” may seem obvious. You have to be 55 or older, right? No, that’s not always the case. In fact, there are many scenarios where there’s only one resident who is 55 or older. Also, there are rare cases when no residents is 55 or older. 

An older adult takes a continuing education course offered in his 55+ community.

Never Stop Learning: Continuing Education Programs in 55+ Communities

Many people look forward to retirement because they can finally stop focusing on work and start focusing on doing more of what they enjoy. Do you want to learn a new language, play an instrument, or try making a new craft? There are many benefits that learning something new can provide.

About 55places

We’re changing the way people 55 and older are searching for their perfect next place. With a national network of hand-selected real estate experts, plus comprehensive information, unbiased content, and on-the-go insight about thousands of communities across the country, we’re a trusted resource paving the way from here to home. Whether you’re interested in a low-maintenance single-level residence, an active lifestyle or age-qualified community, an intimate enclave, or anything in between, we can help you make your next move the best one yet.

Scroll to Top