Real Estate
Are You Eligible For Up To $1,750 In Property Tax Relief?
Here's what you need to know about the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program.
Governor Murphy and the New Jersey Legislature created the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program to provide property tax relief for eligible homeowners and renters. New Jersey residents who meet program criteria can receive up to $1,750 in property tax relief.
Here’s what you need to know about the ANCHOR program, including eligibility criteria, filing information and additional steps required for special circumstances.
What Is The ANCHOR Program?
In March of 2022, Governor Phil Murphy unveiled the ANCHOR Property Tax Relief Program (often referred to as the ANCHOR program) to take effect in the 2023 fiscal year. This program is designed to create greater affordability, effectively reducing the average property tax expenses for many households to 2016 levels. The ANCHOR program expands upon and replaces the former Homestead Benefit Program by providing more money to more residents than ever before, including previously ineligible renters. Thus, many families who were previously ineligible for property tax relief can now benefit from this program.
ANCHOR benefit filing season is underway. Check the status of your benefit.
What Is The Eligibility Criteria For ANCHOR Benefits?
If you owned or rented a home in New Jersey in 2020, you may be eligible for ANCHOR property tax relief benefits. Specific eligibility criteria for homeowners and renters are as follows:
Homeowners
To qualify for ANCHOR benefits, homeowners must meet the following criteria:
- Residency: You owned and occupied a home as your principal residence in New Jersey on October 1, 2020.
- Property Tax Payment: You paid property taxes for said principal residence in 2020.
- Income Limit: Your New Jersey gross income for 2020 was $250,000 or less.
You are not eligible for the ANCHOR benefit if your principal residence was fully exempt from paying property taxes, or you made P.I.L.O.T. (Payments-in-Lieu-of-Tax) fees to your municipality. Vacation homes, “second homes,” and properties rented to someone else are not eligible.
Renters
To qualify for ANCHOR benefits as a renter, you must meet the following criteria:
- Residency: You leased, paid rent on, and occupied a property that served as your principal residence on October 1, 2020.
- Property Tax Impact: The rented property must have been subjected to local property taxes or P.I.L.O.T. agreements.
- Income Limit: Your New Jersey gross income for tax year 2020 was $150,000 or less.
However, several types of rental properties do not qualify for the ANCHOR benefit, including:
- tax-exempt properties;
- on-campus apartments at state colleges or universities; and
- properties owned by religious, charitable or other non-profit entities.
How Much Of A Benefit Could You Receive?
The ANCHOR benefit varies based on income and age.
Homeowners can receive the following:
- $1,750 for those who earned $150,000 or less and were 65 or older in 2020.
- $1,500 for those who earned $150,000 or less and were 64 or younger in 2020.
- $1,000 for those who earned up to $250,000 and were 64 or younger in 2020.
- $1,250 for those who earned up to $250,000 and were 65 or older in 2020.
Renters are eligible for:
- $700 if they earned up to $150,000 and were 65 or older in 2020.
- $450 if they earned $150,000 or less and were 64 or younger in 2020.
What Special Circumstances Come Into Consideration?
The ANCHOR benefit is also available to homeowners and renters with unique living circumstances, such as co-ownership of property, occupancy of a trust-owned home or changes in marital status. If these circumstances apply to you, you may need to file a paper application.
What Information Is Needed For Filing?
The ANCHOR program filing deadline is Dec. 29, 2023.
If you received a green filing packet (for homeowners) or a purple filing packet (for renters), follow the instructions in the packet to apply for the ANCHOR program. You may also apply for the ANCHOR program if you meet the eligibility requirements, even if you did not receive a confirmation letter or filing packet from the NJ Division of Taxation.
- Homeowners can typically file online with an ID and PIN, barring any life events (such as divorce or the death of a spouse) or changes in homeownership in 2020. If these changes apply to you, you will need to file a paper application by mail.
- Renters can file online and do not need an ID or PIN.
Once I Have Filed, When Will I Receive Payment?
Payments are generally issued in as little as 90 days post-application, subject to additional information requests. During this time, the state utilizes measures to ensure the validity of applicants, confirm they are receiving the correct amount and ensure personal information is protected.
What Should You Look Out For?
As with any tax rebate initiative, fraudsters may attempt to gain access to funds. Taxpayers are reminded to be wary of scams. The New Jersey Division of Taxation will never initiate text exchanges to obtain personal information related to your ANCHOR benefit; contact the Division directly before sharing this information, or if you have any questions regarding your application.
Remember, the ANCHOR program filing deadline is Dec. 29, 2023. Now is the time to see if you’re eligible for property tax relief.
