TRENTON – The Senate Community and Urban Affairs Committee advanced two pieces of legislation sponsored by Senator Troy Singleton to provide direct tax relief to renters facing rising housing costs and unsustainable rent burdens across New Jersey.

The first bill, S-1759, sponsored by Senators Singleton and Senate President Nick Scutari, would increase the amount of rental payments defined as "rent constituting property taxes" from 18 percent to 30 percent under the Property Tax Deduction Act. The bill would also increase the optional property tax credit from $50 to $250 for eligible taxpayers, including seniors and residents who are blind or disabled, and would not be subject to gross income tax.

"At a time when rents are rising faster than wages, we have a responsibility to make sure our tax code reflects the realities facing New Jersey families," said Senate President Scutari (D-Union/Somerset). "These bills provide targeted, meaningful relief to renters who are paying an unsustainable share of their income just to keep a roof over their heads. By strengthening the property tax deduction for tenants and creating a refundable credit for those facing excessive rent burdens, we are taking practical steps to improve affordability and protect the economic stability of our residents."

"More than one-third of New Jersey households are renters, and many are paying far more than they can reasonably afford," said Senator 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 who are feeling squeezed every month."

Under current law, renters may deduct up to $15,000 in property taxes or the rental equivalent from gross income, but only 18 percent of rent is treated as property taxes. Increasing that percentage to 30 percent would allow eligible taxpayers to deduct a greater share of their rent, lowering their taxable income and reducing their overall tax burden.

According to the 2024 American Community Survey, approximately 1.28 million of New Jersey's 3.54 million occupied housing units are renter-occupied, meaning 36 percent 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. To afford that rent without spending more than 30 percent of income on housing, a household must earn $83,173 annually, or nearly $40 per hour. By contrast, New Jersey's minimum wage as of January 1, 2026, is $15.92 per hour, and the median renter household income is $65,041.

The Committee also advanced S-1821, sponsored by Senator Singleton, which would establish a refundable gross income tax credit for renters whose rent exceeds 35 percent of their gross income.

"Housing experts have long recognized that when rent exceeds roughly one-third of a household's income, families begin to fall behind," said Singleton. "This bill creates a clear affordability threshold and provides direct relief to renters whose housing costs are simply outpacing their earnings."

Under the bill, taxpayers earning no more than $60,000 annually ($90,000 for joint filers) who pay more than 35 percent of their gross income in rent could qualify for a refundable tax credit of up to $1,000, based on a percentage of their excess rent. The credit would range from 50 percent to 100 percent of the excess rent, depending on the taxpayer's income level and whether the taxpayer resides in a high-cost area. Eligible renters could elect to receive the refundable portion in monthly installments during the following taxable year.

The legislation also provides an alternative credit calculation for renters who receive state or federal tenant-based housing subsidies and allows retroactive eligibility for the taxable year immediately preceding enactment, provided amended returns are filed within 90 days.

"Housing affordability is directly tied to economic stability," Singleton added. "When families are forced to spend more than 35 percent of their income on rent, it impacts their ability to pay for food, healthcare, childcare, transportation, and savings. These proposals recognize that reality and offer targeted, responsible relief. Together, the measures aim to modernize New Jersey's tax policies to reflect the current rental market and provide meaningful assistance to working families, seniors, and vulnerable residents struggling with high housing costs.”