Veterans who were honorably discharged or released under honorable conditions from active service during a time of war may claim a real estate tax deduction annually on homes they own and occupy in New Jersey. A surviving spouse is also entitled to the deduction as long as the widow / widower does not remarry and the spouse would have qualified for the deduction at the time of death. If both husband and wife are veterans, each may claim the deduction. The amount of the deduction has been increased by the state to the maximum allowance of $250. If you have been receiving the veteran's deduction in the past there is no need to reapply unless you move to another residence.