25 Nov What’s the difference between ANCHOR benefit and Senior Freeze?

Q. What is the difference between the ANCHOR benefit and the Senior Freeze?
— Overtaxed

A. There are a host of differences.

Really, the only thing they have in common is that they’re designed to give property tax relief.

The Senior Freeze reimburses eligible senior citizens and disabled persons for property tax increases. In the first year you’re eligible, the year in which you apply is considered your “base year.” As your property taxes go up each year, you’d be reimbursed for the amount of the rise.

The income limits change each year.

The ANCHOR program replaced what used to be called the Homestead Rebate. It has no age restrictions and pays eligible homeowners up to $1,500 and qualifying renters $450, plus an extra $250 goes to senior renters and homeowners.

There are also income limits for the program.

But we’re going to see changes to these programs when Stay NJ, a new benefit, starts to pay out starting in 2026 (assuming we don’t see changes to the program, which could happen).

Stay NJ is supposed to cut property taxes by up to 50% on primary residences for those who are 65 and older and earn less than $500,000 a year. The maximum benefit would be $6,500, and it would first take the other two benefits into account. No one will get less than they get today under the program.

One good thing? Instead of three separate applications, you will only need to complete one, and the deadlines will be consolidated, hopefully making the whole scheme less confusing.

Stay NJ will be a big part of the state’s budget negotiations heading into the summer, so stay tuned.

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This story was originally published in November 2024.

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