Senate passes bill providing tax relief to renters, seniors and disabled residents
The Senate passed legislation sponsored by state Sen. Troy Singleton and state Senate President Nick Scutari that would provide additional property tax relief to renters and other residents in need facing rising housing costs.
The bill, S-1759, would increase the amount of rental payments defined as “rent constituting property taxes” to 30% from 18% under the Property Tax Deduction Act. The bill would also raise the optional property tax credit to $250 from $50 for eligible taxpayers, including seniors and residents who are blind or disabled, and would not be subject to gross income tax.
Under current law, renters may deduct up to $15,000 in property taxes or the rental equivalent from gross income, but only 18% of rent is treated as property taxes. Increasing that percentage to 30% would allow eligible taxpayers to deduct a greater share of their rent, lowering their taxable income and reducing their overall tax burden.
“More than one-third of New Jersey households are renters, and many are paying far more than they can reasonably afford,” said Singleton (D-Burlington), chair of the Senate Community and Urban Affairs Committee. “By increasing the percentage of rent that qualifies for the property tax deduction and raising the credit amount to $250, we are putting meaningful dollars back into the pockets of tenants.”
According to the 2024 American Community Survey, about 1.28 million of New Jersey’s 3.54 million occupied housing units are renter-occupied, meaning 36% of households rent their homes. The financial strain facing those households continues to grow.
The 2025 National Low Income Housing Coalition “Out of Reach” report indicates that the fair market rent for a two-bedroom apartment in New Jersey is $2,079 per month. As of mid-2026, Apartments.com said it cost $2,115 a month for a one‑bedroom, with studios averaging $2,044, two‑bedrooms $2,744, and three‑bedrooms $3,634.
RentCafe lists a higher statewide average of $2,416 per month across all unit sizes, and Zillow has a broader estimate of $2,400 per month across all apartment types.