11 Dec Is there a table that shows all the N.J. property tax breaks?

Q. All the different property tax programs are confusing. They have different requirements, etc. Is there a table showing everything?
— Taxpayer

A. You’re right that it’s confusing.

Residents are sure to be confused a little more once the new Stay NJ property tax benefit kicks in, in 2026.

We’re not going to create a table here because there are nuances that make it confusing — again — but let’s run down all the requirements, starting with Stay NJ.

Stay NJ, working with ANCHOR and Senior Freeze, is designed to cut property taxes by up to 50% to a maximum of $6,500, for residents 65 and older in New Jersey who earn less than $500,000 a year.

Basically, the state will add up what you receive from ANCHOR and Senior Freeze, and if it’s not worth 50% of your property tax bill at a maximum of $6,500, you’d get an additional payment under the Stay NJ name.

The state will determine your eligibility for all three benefits by changing the application process. Under current law, all the benefits have different applications and different deadlines. Instead of applying for each benefit separately, they will have a shared application with a shared deadline. The application must be available as of Feb. 1 with a deadline of Oct. 31 each year.

ANCHOR and Senior Freeze residency requirements will also come into line. To be eligible, people will need to be residents of the state by Dec. 31 of the benefit year. For eligibility as a senior citizen, people would have to be age 65 by Dec. 31 of the benefit year.

Once this all kicks in, the state will finally use the same definition of income, and what counts as income, for all the benefits. It will use a person’s gross income before any deductions or exclusions. It will also include payments that are not taxable for some in New Jersey, including Social Security, pensions, annuities, other retirement income, interest income and distributions from Roth IRAs.

ANCHOR, which is funded in the state budget every year, could have different benefits — but we wouldn’t know that until each budget is passed. Right now, homeowners who earn $100,000 or less get $1,500, homeowners who earn $150,000 or less get $1,000 and renters get $450. If the homeowner or renter is a senior, they get an additional $250.

Senior Freeze works differently. It has two income requirements to qualify: that your 2022 income was $150,000 or less and your 2023 income was $163,050 or less. This can change every year.

If you meet the income limits, to calculate your benefit, the year in which a senior first applies is considered the “base year.” Each year the person’s property taxes go up, they would get a payment for the extra so they’re not paying more than their “base year” amount out-of-pocket.

So how does it all work together?

Let’s say your property taxes are $10,000 a year. Let’s also assume your income is $90,000 a year. You’ve been in the Senior Freeze program since your “base year” property taxes were $8,000 a year, so you’d get a $2,000 payment.

Then let’s say your ANCHOR benefit was $1,750 for the year.

To determine your Stay NJ benefit, the state will add together your ANCHOR ($1,750) and your Senior Freeze ($2,000), which in this example comes to $3,750. Under Stay NJ, the maximum benefit is either 50% of your tax bill with a maximum of $6,500. With $10,000 annual property taxes, this person’s max benefit would be $5,000. To reach that, they’d receive an extra Stay NJ payment, on top of ANCHOR and Senior Freeze, of $1,250.

We hope that helps.

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This story was originally published in December 2024.

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