The NJ Senior Freeze can save you money

Senior Freeze (Property Tax Reimbursement) Program)

This New Jersey tax reduction program works but you have to apply

New Jersey residents may not be aware of the Property Tax Reimbursement Program, also known as the “Senior Freeze” program: a state program that reimburses eligible senior citizens for property tax increases on their primary residence. Once a household applies for the “Senior Freeze,” their future property taxes are “frozen” at their current level for all future years in which they meet the requirements.

Normally, this “freeze” works by issuing annual reimbursements to program participants, paying back the difference between their “frozen” property tax level and the increased amount they actually paid. Unfortunately, due to the coronavirus and the pending state budget, there may be some changes to the program’s funding this year, reducing or eliminating the reimbursement amount for 2020 only.

In the meantime, residents can still apply to “freeze” their property taxes at their current level, rather than waiting another year and allowing your taxes to increase in 2021. Applicants might not receive a reimbursement for this year’s Senior Freeze, but accepted applicants will pay less in taxes next year, and for all subsequent years that they qualify.

Applicants must meet the following eligibility requirements to qualify for the Senior Freeze:

•  You or your spouse/civil union partner were 65 or older on December 31, 2018 or were receiving federal Social Security disability benefit payments on or before December 31, 2018
• You have lived in New Jersey continuously since December 31, 2008, or earlier, as either a homeowner or a renter.

Homeowners Only:     

•       You owned and lived in your home since December 31, 2015, or earlier (and you still owned and lived in that home on December 31, 2019.
•       The 2018 property taxes due on your home must have been paid by June 1, 2019, and the 2019 property taxes must be paid by June 1, 2020.

 Mobile Home Owners Only:

•  You leased a site in a mobile home park where you placed a manufactured or mobile home that you owned since December 31, 2015, or earlier (and still lived in that home/leased the site on December 31, 2019).
• Your site fees must have been paid by December 31 of each year respectively.

 Additionally, applicants must meet the following income limits:

•  Your total annual income (combined if you were married or in a civil union and lived in the same home) was:
• 2018 – $89,013 or less; and
• 2019 – $91,505 or less

 You are not eligible for a reimbursement on:

• A vacation home or second home;
• Property that you rent to someone else;
• Property that consists of more than four units; or
• Property with four units or less that contains more than one commercial unit.
• Are completely exempt from paying property taxes on your home; or
• Made P.I.L.O.T. (Payments-in-Lieu-of-Tax) payments to your municipality.

Life Estate (Life Tenancy). You are considered the owner of the property if you have life estate rights or hold a lease for 99 years or more. You must include with your application a copy of an official document (e.g., deed, lease) establishing your right to occupy the property.

For more information and to apply on line, visit New Jersey’s Senior Freeze website at https://www.state.nj.us/treasury/taxation/ptr/index.shtml

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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