18 Jun Are there any updates relative to ANCHOR benefit for tax year 2021?

Q. Are there any updates relative to ANCHOR benefit for tax year 2021?
— Homeowner

A. Not yet.

June 30 is the deadline for the Legislature and the governor to complete their negotiations for the state budget.

It’s expected that the ANCHOR benefit for 2021 will be funded the same as it was the year before, but it won’t be official until the budget is signed.

What will be interesting to see, though, is what happens to ANCHOR going forward because of the new Stay NJ property tax cut. That benefit isn’t scheduled to begin until 2026, but exactly how it will work is not yet set in stone.

Based on recommendations from the Stay NJ task force, it looks like Stay NJ will cut property taxes for seniors who earn $500,000 or less, with a cap of $6,500. But you won’t get that cut on top of ANCHOR. Instead, it was recommended the state calculate how much each senior would get from a combination of ANCHOR and the Senior Freeze. If it’s less than 50% of the property tax bill (again, capped at $6,500), then they would get an additional payment from Stay NJ to bring the total benefit to the maximum. If ANCHOR plus Senior Freeze is more than 50% of the tax bill, no further Stay NJ bill will be paid.

Importantly, no one would get less than they get now, and depending on each person’s specifics, they may get more than they get today.

Complicated? Yes.

But to make the process easier, the Stay NJ law calls for all three tax benefits to have one application. That will help, for sure.

But for the 2021 ANCHOR payment, it’s expected residents will receive letters from the Treasury Department if their benefit will be automatic because the state already has all their information. Otherwise, you’ll probably have to file an application when they are available this fall.

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This story was originally published in June 2024.

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