What are property tax relief programs in New Jersey?
In New Jersey, some property tax relief programs can offer help property owners who need assistance. For an overview of what is available in New Jersey, read on.
Anchor Program
New Jersey is known for having some of the highest property taxes in the country. The state’s Anchor Program aims to provide some relief to homeowners by offering up to $1,500 in rebates to families who make less than $250,000. Renters making less than $150,000 will receive a rebate as well.
Eligibility for the program depends on specific requirements, according to the New Jersey Division of Taxation.
Who is eligible for the Anchor program?
New Jersey homeowners who meet the requirements for residency, income and age are eligible for an Anchor homeowner benefit if they:
- Are a New Jersey resident.
- Own and occupy a home in New Jersey that was your principal residence.
- Paid property taxes on that home.
- Earn New Jersey gross income of $250,000 or less.
When will a homeowner receive their Anchor benefit?
Payments will be issued on a rolling basis. Most applicants can expect to receive their payment approximately 90 days after filing the application, unless the state of New Jersey requests additional information to process the claim.
It’s also important to know that if any information changed from your prior filing, you will have to file your application and update these changes before September each year. The state won’t make adjustments to your name, address or banking information after Sept. 30.
Homeowners receive a packet with filing instructions, an identification number and PIN in the mail by Sept. 1. It’s vital to keep this documentation.
Senior Freeze program
The Senior Freeze program reimburses eligible senior citizens and disabled people for property tax or mobile home park site fee increases on their principal residence. You must meet all eligibility requirements for each year from the base year through the application year.
The New Jersey Legislature on June 30 expanded the income limit and simplified the residency requirements for new Senior Freeze program applicants. Beginning with the 2023 filing season, the law increased the income limit for the program to $150,000 and eliminated the requirement that an applicant must be a New Jersey resident for 10 consecutive years. The age/disability and three-year homeownership requirements remain unchanged.
The deadline to apply is Oct. 31, and taxpayers can apply online. You’ll need the following supporting documentation to prove:
- Age/disability status, paid property taxes/mobile home site fees and death certificate, if applicable.
- Paid property tax/mobile home site fees and death certificate, if applicable.
Military Property Relief Benefit
All New Jersey veterans are eligible for a $250 property tax deduction regardless of disability status. Honorably discharged veterans with active duty service qualify for this annual property tax exemption on their primary residence. An eligible veteran's surviving spouse or domestic partner is also eligible.
Deductions, exemptions and abatements
New Jersey offers several property tax deductions, exemptions and abatements that are designed to reduce the amount of taxes a person owes. Some of these tax benefits are intended to reflect a person’s ability to pay tax or to reduce property taxes.
These programs are managed by your local municipality. Tax deductions, exemption and deferment programs include:
- $250 property tax deduction for senior citizens and disabled persons.
- $250 veteran property tax deduction.
- 100% disabled veteran property tax exemption.
- Active military service property tax deferment.
Some installations and conditions could make you eligible for property assessments, exemptions and abatements under various programs including:
- Automatic fire suppression system.
- Environmental Opportunity Zone.
- Five-Year Exemption and Abatement.
- Historic Site.
- Non-Profit Organizations.
- Non-Residential Development Fee Certification/Exemption.
- Renewable Energy System.
- Urban Enterprise Zone.
The following properties may also be qualify for tax exemptions if they qualify as:
- Certified historic properties.
- Conservation or recreation land owned by non-profits.
- Dedicated pet cemeteries.
- Parsonages.
- Owned by medical service corporations, dental service corporations or New Jersey School Boards Association.
- Occupied by district superintendents of religious organizations.
- Used by certain youth associations or veterans' associations or fraternal organizations.
- Used by governments or public authorities.
Frequently asked questions (FAQs)
Who qualifies for property tax relief in New Jersey?
Eligibility varies from program to program. Requirements, including income limits and benefits available for all property tax relief programs, are subject to change by the New Jersey Legislature. Check with the state Division of Taxation for up-to-date requirements.
What is the new property tax law in New Jersey?
In summer 2023, state lawmakers approved StayNJ, a program meant to reduce seniors’ property tax bills. The program offers New Jersey homeowners 65 and over tax credits worth up to half of their property tax bills, to a cap of $6,500, as long as they make no more than $500,000 a year. The goal is to discourage senior citizens of New Jersey from moving out of state.
Why are New Jersey property taxes so high?
New Jersey's average effective tax rate is 2.23%, the highest in all 50 states and the District of Columbia, according to an analysis from the Tax Foundation. Some experts attribute the high property taxes to labor costs, education costs, the region’s high cost of living and population density. Services provided by companies like TurboTax and H&R Block can prepare your taxes so you get all the deductions available.
This story was written by NJ Personal Finance, a partner of NJ.com. The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.
