16 Jul Why is Social Security part of the property tax break calculation?

Q. Why are Social Security benefits used to compute total income on the new PAS-1 form if they are not considered taxable income on the NJ-1040? Won’t this cause more people to not be eligible for the ANCHOR benefits that have a $250,000 top threshold for eligibility?
— Homeowner

A. You are correct.

Using Social Security as part of the income calculation will indeed mean more people are ineligible for the state’s property tax benefits.

New Jersey does not tax Social Security, U.S. Savings Bond or Treasury Bond interest and certain pension and/or IRA income if you qualify, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

“However, to be eligible for the Senior Freeze, ANCHOR and Stay NJ programs, you must include all your income — whether it is taxable or not,” Kiely said.

The income limits for the three programs are:
Senior Freeze: $168,268 or less in 2024 and $163,050 or less in 2023.
ANCHOR: $250,000
Stay NJ: $500,000

“The reason the Stay NJ income limit is so high is that people of modest incomes are not leaving New Jersey, but people with higher incomes are,” Kiely said.
You no longer have to complete multiple forms. You can apply for the three programs by completing Form PAS-1 at propertytaxrelief.nj.gov.

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published in July 2025.

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