NJ S3261

Raises the maximum New Jersey gross income tax deduction for homestead property taxes paid from $15,000 to $25,000

Applies the increased $25,000 cap to renters who deduct 18% of rent paid as property taxes (rent constituting property taxes)

Extends the higher deduction limit to taxpayers who both own and rent during the same tax year, allowing them to combine property taxes and rent-based deductions up to $25,000

Sponsored by Senator Kristin M. Corrado (District 40 - Bergen, Essex and Passaic) and introduced February 2, 2026

Takes effect immediately upon enactment, citing the "ever-increasing burden" of property taxes and rents on New Jersey families