By: Joseph Goldy, CFP®
Depending on the list, sometimes being ranked #1 is where you want to be, and sometimes it’s not.
For example, New Jersey ranks #1 in education according to U.S. News and World Report. The Garden State also ranked #1 as the 2021 best state to live in (barely getting beat out by Massachusetts in 2022, boo!), #1 in most Revolutionary War battles in a single state, and #1 in the number of dentists per 100,000 residents.
New Jersey Property Tax
Unfortunately, N.J. also ranks #1 in the country for highest property taxes, according to Wallethub’s annual survey. Average property taxes based on the median home value in New Jersey were $8,362. This amount compares to $587 in Alabama, the lowest on the list by this metric.
To help, in June of 2022, Governor Murphy enacted the Affordable NJ Communities for Homeowners and Renters (ANCHOR) legislation which replaced the Homestead Rebate program.
Affordable NJ Communities for Homeowners and Renters (ANCHOR)
The program changes were significant in that they greatly expanded the number of N.J. homeowners who qualify, compared to the Homestead Rebate program, while also including almost a million renters.
Filing Deadline for ANCHOR 2023
February 28, 2023, is the deadline to apply, but fortunately, it is quick and easy. You can submit your ANCHOR application online, by mail, or by calling 877-658-2972.
You will need your ANCHOR ID and PIN to submit your application online, and if you filed a Homestead Rebate last year, you should have received a mailer with your I.D. and PIN. If you did not, you can retrieve your I.D. and PIN here.
Calculate Your ANCHOR Benefit for 2023
The calculation of your benefit is based on your 2019 N.J. gross income:
Homeowners
2019 Gross Income (NJ-1040 Line 29) of $150,000 or less = $1,500
2019 Gross Income (NJ-1040 Line 29) $150,001 to $250,000 = $1,000
Renters/Tenants
2019 Gross Income (NJ-1040 Line 29) is $150,000 or less = $450
All payments will be sent via direct deposit or physical check in late Spring and are not taxable at the state or federal level.
To be eligible for the ANCHOR Rebate, homeowners and renters must have had to occupy their primary residence on October 1, 2019, and file (or be exempt from) N.J. income taxes. Please contact your Highland advisor if you have questions about completing the ANCHOR application.
Joseph Goldy, CFP®, is a wealth advisor and CERTIFIED FINANCIAL PLANNER™ at Highland Financial Advisors, LLC, a fee-only fiduciary wealth advisory firm based in Wayne, New Jersey.
Joe specializes in working with newly independent women because of divorce or losing a spouse. He understands firsthand the value of having a clear financial picture pre- and post-divorce and a plan to restate goals as a single person. When he is not helping clients, Joe enjoys spending time with his two sons outdoors and volunteering to help raise money for Type 1 diabetes organizations.