Which exemptions are commonly used to reduce property taxes?

• A. Senior/Disabled exemption and Veterans exemption
• B. Energy tax credit and mortgage reduction
• C. Lottery winnings credit and vehicle tax credit
• D. Rental income exemption and agricultural exemption

Answer: (B)

Property tax relief generally comes from exemptions that lower either the taxable value of a home or the tax owed. In New Jersey, the most common relief is provided through exemptions based on personal status, such as being a senior citizen or disabled, and through exemptions for eligible veterans. These exemptions are routinely used to cut the property tax bill for qualifying homeowners. The options listed as energy tax credits and mortgage reductions aren’t standard property tax exemptions in New Jersey; energy-related credits typically apply to income taxes or specific energy programs rather than directly reducing the property tax bill, and mortgage reductions don’t function as a direct exemption from property taxes. So, the forms of relief most commonly used to reduce property taxes are the senior/disabled exemption and the veterans exemption.