By: Joey Casolaro, CFP®
New Jersey property taxes remain among the largest expenses facing homeowners and retirees. The good news is that the State currently offers three major programs designed to offset that cost: ANCHOR, Senior Freeze, and Stay NJ.
The rules have become easier to navigate because eligible seniors can now use a single application (Form PAS-1) to be considered for all three programs. However, New Jersey's recently enacted FY 2027 budget also made significant changes to Stay NJ, making it particularly important to understand what has changed and who still qualifies.
Stay NJ: Significant Relief, but Benefits Have Been Reduced
Stay NJ was created to provide substantial property tax relief to New Jersey homeowners age 65 and older.
The program had previously been structured around reimbursing eligible seniors for 50% of their property tax bill, subject to a maximum benefit. Earlier 2026 guidance considered eligibility for households with income below $500,000. However, the FY 2027 budget, signed on June 30, 2026, changed the program.
For the 2025 tax-year benefit, which is being applied for in 2026 and paid in 2027, eligibility is now limited to households with an income of $200,000 or less, and the maximum benefit is tiered:
To qualify for the current Stay NJ application, you or your spouse must have been 65 or older during 2025, you must have owned and occupied your New Jersey home for all 12 months of 2025, and your income cannot exceed $200,000. Renters and mobile-home owners do not qualify for Stay NJ.
What happened to the 2026 Stay NJ payments?
There is also a separate reduction affecting the Stay NJ benefits being paid during calendar year 2026, which relates to the 2024 tax year.
Under the FY 2027 budget, recipients will not receive a new full third and fourth quarter benefit. Instead, the amount that had been scheduled for the third quarter is being split between August and November 2026. The Division of Taxation explicitly states that this results in recipients receiving a lower overall Stay NJ benefit for calendar year 2026.
This distinction is important: 2026 payments were reduced, while the next benefit year also has a new $200,000 income ceiling and tiered maximums.
ANCHOR: Property Tax Relief for Homeowners and Renters
ANCHOR has broader eligibility than Stay NJ and is available to qualifying homeowners and renters. For the 2025 benefit year:
Homeowners
NJ gross income of $150,000 or less: $1,500 benefit
NJ gross income of $150,001–$250,000: $1,000 benefit
Income above $250,000: Not eligible
Renters
NJ gross income of $150,000 or less: $450
Renters age 65 or older: $700
Income above $150,000: Not eligible
The home must generally have been your principal New Jersey residence on October 1, 2025.
For many homeowners under 65 and most renters, New Jersey is automatically filing the ANCHOR application based on previously available information. The State began sending qualifying taxpayers ANCHOR Benefit Confirmation Letters on August 10, 2026.
Senior Freeze: Protecting Retirees From Rising Property Taxes
Senior Freeze works differently from ANCHOR and Stay NJ.
Rather than providing a fixed benefit, Senior Freeze generally reimburses eligible residents for property tax increases above their established base-year amount. In effect, once a qualifying base year is established, future eligible increases may be reimbursed.
For the 2025 application, you or your spouse/civil union partner generally must have been:
65 or older by December 31, 2025, or receiving qualifying Social Security or Railroad Retirement disability benefits;
An owner and resident of the home since December 31, 2022, or earlier; and
Within the program's income limits.
The applicable income limits are:
Both years' income requirements generally must be satisfied.
Unlike Stay NJ, qualifying mobile home owners may participate in the Senior Freeze based on eligible site fee increases.
One Application Can Cover All Three Programs
One of the biggest improvements to New Jersey's property tax relief system is the combined application.
Seniors and qualifying disability recipients use Form PAS-1, Application for Property Tax Relief, which allows New Jersey to determine eligibility for: Senior Freeze + ANCHOR + Stay NJ.
You do not have to determine which programs you qualify for before applying. The State will calculate the applicable benefits based on the information submitted.
There is also an important limitation: the combined amount of New Jersey property tax relief generally cannot exceed the property taxes paid on the principal residence for the qualifying year.
The 2026 Deadline: November 2
The deadline to submit the application for 2025 property tax relief is November 2, 2026.
The simplest method for seniors is to file PAS-1 online through the New Jersey Division of Taxation's Property Tax Relief portal. A paper PAS-1 can also be mailed.
When Should You Expect the Money?
The State's current payment schedule is:
Senior Freeze: Payments began July 15, 2026, and continue based on application processing.
ANCHOR: Payments begin September 15, 2026, and continue on a rolling basis; most are expected within 90 days of filing unless additional information is required.
Stay NJ: Remaining benefits relating to the 2024 tax year are being paid in August and November 2026. Benefits associated with the 2025 Stay NJ application are scheduled for February and May 2027.
For New Jersey residents, particularly retirees, these programs can represent meaningful annual savings. But Stay NJ is not as generous as originally contemplated for many higher-income households. The new $200,000 income ceiling means seniors who previously expected to qualify with income between $200,000 and $500,000 will not receive a Stay NJ benefit under the current rules. In comparison, benefits for households between $100,000 and $200,000 are subject to lower maximums.
The most important takeaway is simple: don't assume you are automatically enrolled. If you are 65 or older and potentially eligible for New Jersey property tax relief, review the PAS-1 requirements and submit your application by November 2, 2026.
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.
The foregoing content reflects the opinions of Highland Financial Advisors, LLC, and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct.
Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns.
Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful or that markets will act as they have in the past.
The above article was written with the assistance of artificial intelligence (AI).