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

This bill allows New Jersey residents to deduct the full amount of state property taxes paid on their primary home from their state income tax bill, removing a previous $15,000 annual cap. It applies to homeowners and renters of residential properties, with income-based limits: taxpayers earning over $150,000 but under $250,000 face a $5,000 deduction limit, while higher earners ($250,000+) are ineligible unless they qualify as elderly or disabled. The deduction covers property taxes paid during the calendar year and aligns with existing tax code provisions for primary residences. The bill amends New Jersey's Gross Income Tax Act to implement this change, effective for the 2026 tax year.