Renovation tax savings
Improve your home, not your tax bill.
Some New Jersey towns let you exempt part of a renovation's added value from property tax for five years. You have to file on time, and your town has to take part.
Deadline: file Form E/A-1 with your local tax assessor within 30 days of finishing the work. Miss it and the improvement is assessed right away.
How it works
- Check that your town has adopted a five-year exemption ordinance. Not every New Jersey municipality has. Your tax assessor can tell you.
- For homes, the exemption generally applies to dwellings more than 20 years old.
- Finish the work. Completion means the improvement is substantially ready for use.
- File Form E/A-1 with the assessor within 30 days. If approved, up to $25,000 of the added assessed value is exempt from tax each year for five years.
Source: New Jersey Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21, and NJ Division of Taxation Form E/A-1. Local ordinances set the details, so confirm with your assessor before you start.
What usually counts
- Finished basements
- Kitchen and bath remodels that add value
- New decks, porches and similar additions
Ordinary repairs and maintenance, like replacing a roof with the same thing, generally don't count as an improvement. Rules vary by town.