ANCHOR, Stay NJ Tax Rebates Changes In New Record-Setting Budget

NEW JERSEY — The record-high budget proposed for New Jersey's next fiscal year includes $4.3 billion for property tax relief programs, with the Stay NJ program set to start for eligible seniors in 2026.

New Jerseyans continue to pay the highest property taxes in the nation, and the state has funneled billions into programs like ANCHOR (Affordable New Jersey Communities for Homeowners and Renters).

While delivering his final budget address, Gov. Phil Murphy touted the investment his administration has made in these programs. ANCHOR has paid out $6.2 billion over the last three years, he said.

“Back in 2018, the average, eligible homeowner in New Jersey received $246 in property tax relief," Murphy said Tuesday. "This year, that average (ANCHOR) tax relief payment will be over $1,500 — a more than 500 percent increase in just seven years.”

The Fiscal Year 2026 budget includes money for that popular program to continue, for another year of Senior Freeze, and for the new Stay NJ benefit meant to entice older residents to keep living in the state.

But without a dedicated funding stream, it’s unclear whether future administrations would be able to carry the benefits forward in FY 2027 and beyond. And state Republicans continued their calls to slash state spending, after Murphy unveiled the record $58.1 billion budget.

The state began funding Stay NJ in the 2024 budget, and this latest proposal calls for another $280 million to be funneled into the program — bringing the total to $600 million. This program promises to cut property tax bills in half for seniors with incomes up to $500,000, to a maximum amount of $6,500.

The first round of tax credits under Stay NJ will go out in 2026, and will be capped at $3,250 in the first year, since the new budget year begins in July. More than 432,000 senior homeowners are expected to qualify.

Under the legislation establishing Stay NJ, the program will be put on pause if state reserves drop below a certain amount, as the New Jersey Monitor reported.

The governor said this year's budget incorporated nearly $2 billion in reductions, including scaling back some programs, but there is still a predicted budget deficit of $1.2 billion.

Since Stay NJ is expected to cost the state $1.2 billion a year, future administrations will have to find ways to fund it fully. In remarks after Murphy's address, State Sen. Anthony Bucco (R-25) said the next governor "is going to be left with an enormous hole to fill" to keep it going, and stay ahead of that deficit.

"It’s going to be that much harder for the next governor to be able to move that program forward," he said.

The budget also includes $2.4 billion to continue ANCHOR for a fourth year. Payments will remain the same as they have been, ranging from a minimum benefit of $450 to a maximum of $1,750 for senior residents.

In FY 2026, state officials estimate that more than 1.3 million homeowners and 717,000 renters will get an ANCHOR benefit.

A $239 million allocation would also provide continued funding for Senior Freeze, which is a property tax reimbursement program for seniors and disabled residents.

State Sen. Joe Pennacchio (R-26) also renewed his calls to start New Jersey's own Department of Government Efficiency after the address.

“We will have a new Governor taking office in just over a year from now and whether they are Republican or Democrat, they will be handed a difficult budget situation as the State is projected to have billions in deficit," Pennacchio said. "DOGE will help tremendously with going into that process and we should greet the new Governor with a blueprint of where and how we can find cost savings and improve efficiency."

Original article — More Taxes, Big Spending: 5 Takeaways From Murphy’s Final Budget