Are you talking about as an income tax deduction or the NJ property tax rebate? If you are talking income tax, then use your prior year return to compute the tax benefit for interest and property tax. If you are looking at the NJ rebate, then look on the NJ tax website for the amount you would be entitled to receive.

Linda, knowing you make $48k a year isn't enough information to figure out your marginal tax rate. Some tax prep services will tell you the marginal tax rate when they prepare your taxes. If your marginal tax rate is 28% then you will get back 28% of 48,000 if that is your marginal tax rate after you itemize deductions. You will also get back that same percentage of the interest you pay on your mortgage. Since you know the taxes of the home you want to buy I could assume you already have an agent that is working for you (at least I hope they are working FOR you and not for the seller).

Since that agent is going to get paid when you settle, you should feel free to ask them questions such as this and although generally they might not be able to answer they should be able to refer you to an accountant who can.

You can't generalize and conclude that it is cheaper to buy a house where taxes are cheaper. The tax rate of various towns depends on their budget (which depends on services provided such as police, fire, schools etc) in conjunction with their tax base. Not only that but since it has been years since some towns were reassessed there are wide variations in the taxes for similar property even within the same town.

If this has confused more than helped that is probably a good thing because you won't stop asking questions. You should expect the agent you have chosen, to help you get answers.
Paul Howard

Hi Linda,

I think your question is geared towards a tax accountant rather than a real estate professional. If you need the names of some local accountants in the area, please call me and I would be happy to forward that information.

Good luck with your purchase. I have sold many homes in Cherry Hill and it is a great town with excellent schools. I'm sure that you will be happy with your purchase.

If I can help, please contact.

Sincerely,
Rosanne Gentile
Broker - Sales Associate
Weichert, Realtors - Moorestown Office
856 235-1950 x 140
609 680-8490 cell

Linda,

Your taxes will really depend on all your itemized reductions. Your DTI( debt-to-income) ratio as well as a few other factors will determine if what you qualify to purchase. Call me in my office. I'm right here in Cherry Hill. I have helped many local families make the most out of their real estate investment.

Best Regards,
Jeremy S. Hill, Realtor
Keller Williams Realty http://www.southnewjerseyhomes.com
1814 Route 70 East
Cherry Hill, NJ 08003
Office: 856.685.1651
Fax: 856.321.1414
Direct: 609.876.5817
"Your Interest 1st Always!"