By: Joey Casolaro, CFP®
For residents living in New Jersey, three major property tax relief programs are designed to help homeowners and renters manage their property tax burden. Understanding these programs and their income requirements is crucial for maximizing tax savings. Below is an overview of New Jersey's three major property tax relief programs and what you need to know to take advantage of them:
1. ANCHOR Program (Affordable New Jersey Communities for Homeowners and Renters)
The ANCHOR Program is New Jersey's primary property tax relief initiative, replacing the former Homestead Benefit Program. It provides direct payments to eligible homeowners and renters.
Benefit Amounts
Homeowners with income up to $150,000 receive $1,500
(or $1,750 if age 65 or older)
Homeowners with income between $150,001 and $250,000 receive a reduced benefit
Renters with income up to $150,000 may also qualify for a benefit, with amounts varying based on income
Eligibility for Homeowners:
Have owned and occupied their New Jersey home as a primary residence on October 1, 2024
Have an income of $250,000 or less
Eligibility for Renters:
Have rented and lived in a New Jersey residence as their primary home on October 1, 2024
Have their name on the lease
Have an income of $150,000 or less
2. Senior Freeze (Property Tax Reimbursement Program)
The Senior Freeze program is designed to help senior citizens and disabled individuals by reimbursing them for increases in property taxes or mobile home park site fees on their principal residence. Once enrolled, your property tax is "frozen" at the level it was in your first qualifying year, and you are reimbursed for any increases going forward.
Income Limits
2023 income must have been $163,050 or less
2024 income must be $168,268 or less
Eligibility
Be 65 years or older, or receiving Social Security disability benefits
Have owned and lived in their home as their primary residence
Meet annual income limits, which vary by year
3. Stay NJ Program
The Stay NJ Program offers additional relief for seniors by covering up to 50% of their annual property tax bill, with a maximum benefit of $6,500.
The program officially begins in 2026, with half-year payments capped at $3,250 for the first year. Quarterly payments will be made in February, May, August, and November. Stay NJ benefits are calculated after applying ANCHOR or Senior Freeze benefits.
Eligibility
To qualify, homeowners must:
Be 65 years or older
Own and occupy their home as a principal residence for the full calendar year
Have an annual income under $500,000
Simplified Application Process Starting in 2025
Beginning February 2025, a single, streamlined application will be introduced for residents aged 65 and older or those receiving Social Security Disability benefits. This unified process will cover all three programs—ANCHOR, Senior Freeze, and Stay NJ—and will be available online and by mail.
What This Means for You
New Jersey's property tax relief programs offer valuable savings, but the rules can be complex and the eligibility criteria vary from program to program. Planning is key.
We recommend speaking with your advisor if you're unsure whether you qualify or would like assistance navigating the application process. Together, we can ensure you're taking full advantage of the benefits available to you.
Joey Casolaro is a CERTIFIED FINANCIAL PLANNER® at HIGHLAND Financial Advisors, a Fee-Only fiduciary wealth advisory firm that offers comprehensive financial planning, retirement planning, and investment management. Joey graduated from the University of South Florida with a bachelor’s degree in personal finance and successfully passed the CFP national exam in 2021. Joey enjoys working out, spending time outdoors, and hanging out with family and friends in his free time.
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