The New Jersey Senate has approved legislation that would significantly expand property tax relief for renters, a move aimed at easing the burden of soaring housing costs across the Garden State.
The bill, S-1759, sponsored by Senate President Nick Scutari (D-Union) and Sen. Troy Singleton (D-Burlington), would increase the portion of rent considered to be property taxes from 18% to 30% under New Jersey’s Property Tax Deduction Act.
If enacted, renters would be able to claim a substantially larger property tax deduction, reducing their taxable income. The legislation would also increase an optional property tax credit from $50 to $250 for eligible taxpayers, including senior citizens and residents who are blind or disabled.
The measure now heads to the New Jersey Assembly for consideration.
Under current law, renters may deduct up to $15,000 in property taxes paid, or an equivalent portion of their rent, from their gross income. However, only 18% of rent currently qualifies as property taxes. Raising that percentage to 30% would allow renters to claim a significantly larger deduction.
Unlike deductions, which lower taxable income and provide varying savings depending on a taxpayer’s income, tax credits directly reduce the amount of taxes owed.
The proposal comes as lawmakers continue searching for ways to address New Jersey’s affordability crisis.
According to the 2024 American Community Survey, approximately 1.28 million of New Jersey’s 3.54 million occupied housing units are renter-occupied, accounting for roughly 36% of all households.
The 2025 National Low Income Housing Coalition’s “Out of Reach” report found that the fair market rent for a two-bedroom apartment in New Jersey is now $2,079 per month. To afford that without spending more than 30% of gross income on housing, a household would need to earn about $83,173 annually—nearly $40 per hour.
By comparison, New Jersey’s minimum wage rose to $15.92 per hour on Jan. 1, 2026, while the median renter household income stands at $65,041.
The legislation does not include an estimate of its potential cost to the state.