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Yes, but it is not a direct deduction. New Jersey doesn't list the deduction as a "rent deduction" but rather as a "property tax" deduction. However, you are allowed to claim a credit on your NJ return if you are paying property taxes through your rent. This NJ website gives more information: https://www.state.nj.us/treasury/taxation/njit35.shtml
That website provides that you can either claim a $50 credit (which reduces your tax liability by $50), or you may claim the property tax deduction. In general, NJ stipulates that 18% of your rent is included as property tax. However, there are conditions to this, particularly if you live in a multi-unit building. There is a link on the website with further instructions to calculate the deduction.
Once you figure out which method works better for you, look for the Property Tax deduction/credit, which should be in the "Deductions and Credits" section of the NJ state return.
i pay around 45K rent and turbotax gave me 8100 property tax deduction for rental. Is that accurate?
Yes. NJ considers 18 percent of your rent to be for property taxes.
Nice write up
Thanks
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