Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

This bill would allow New Jersey homeowners to deduct the full amount of state property taxes paid on their principal residence from their gross income tax, removing the current $15,000 annual cap. It directly affects homeowners who pay state property taxes on their primary residence, as they would no longer be limited to deducting only up to $15,000 of those taxes. The key change eliminates the existing deduction limit, permitting full deduction of all qualifying property taxes paid in the calendar year. This applies to both homeowners and renters (who deduct "rent constituting property taxes"), but the bill specifically targets the property tax deduction cap for primary residences. The change would take effect for taxable years beginning January 1, 2022.