3 Huge Property Tax Relief Plans For NJ In Proposed 2024 Budget

NEW JERSEY - Garden State residents will be able to apply for another year of property tax relief benefits under the state’s ANCHOR program this year under Gov. Phil Murphy’s proposed 2025 fiscal year budget.

The plan, unveiled Tuesday during the governor’s budget address in Trenton, would again grant up to $1,750 of relief for homeowners and $700 for renters as part of the largest property tax relief program in state history, Murphy said. Read more: 5 Big Takeaways From Murphy's Budget Address

“Our proposed budget will once again lower costs for middle- and working-class families — as well as seniors — by providing another round of historic tax relief,” Murphy said. “Since it was introduced, the ANCHOR Program has effectively lowered property taxes down to levels that, in many cases, our families have not seen in a decade.”

Nearly 1.3 million homeowners and more than 700,00 renters were able to take advantage of the program in the current year, which provided more than $2.2 billion in direct relief to Garden State residents.

The proposed budget allocates $2 billion more to the 2025 fiscal year’s ANCHOR benefits, which would reflect the 2021 fiscal year. The expanded relief program is expected to benefit thousands of additional families and seniors, Murphy said.

A record $3.5 billion is expected to return to the pockets of New Jersey’s taxpayers in the upcoming year by way of several credit and relief programs, per the governor.

Help For Parents

The proposed budget will also provide over $700 million in direct relief to New Jersey families through the Child Tax Credit, the Child and Dependent Care Tax Credit and the Earned Income Tax Credit, among other programs, Murphy said. New Jersey families could see even more relief as a package seeking to breathe new life into the pandemic-era federal child tax credit is under consideration. Read more: Child Tax Credit May Increase In 2024 For NJ Parents: What To Know

Aside from the state’s current programs, RetireReady NJ — which will provide nearly every worker an option to invest in a retirement savings plan — is set to be funded in the state budget for the first time this upcoming year.

Help For Seniors

The StayNJ program, which won’t go into effect until at least 2026, will also see its second year of funding, according to Murphy's plan. That program would slash property taxes by up to 50% (with a $6,500 cap) for some senior homeowners. Read more: 2023 NJ Property Tax Reimbursement Program: Eligibility, How To Apply

The proposed budget will invest $200 million more into the Stay NJ program, up from $100 million in the current budget, which "will make it even more affordable for grandparents to stay close to their kids and grandkids here in New Jersey," Murphy said.

Last year, New Jersey property owners paid more than $3.3 billion in taxes, an increase of more than $1 billion from 2022, according to data released this month by the New Jersey Department of Community Affairs.

On average, New Jersey property owners paid $9,803 in property taxes in 2023, or $300 more than in 2022. That's an all-time high for the Garden State.

"At a time when families are grappling with higher prices at the checkout counter, we are putting more money back into their pockets than ever before," Murphy said.