The Highest Taxes, and the Biggest Relief Checks
New Jersey homeowners pay the highest property taxes in the United States, with average bills approaching $10,000 a year and far more than that in counties like Bergen and Essex. What many residents don't realize is that the state now operates three separate relief programs, and that as of the 2025 benefit year they can be claimed together, on a single application, with combined benefits worth up to half of your property tax bill if you're 65 or older.
The three programs are ANCHOR (for homeowners and renters of all ages), the Senior Freeze (a reimbursement that locks in your tax level), and Stay NJ (the new senior benefit that first paid out in 2026). Each works differently, and the interaction between them matters.
ANCHOR: The Broadest Program
ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) is a flat benefit based on your income and your principal residence on October 1 of the benefit year. It's the only one of the three programs open to renters and to homeowners under 65.
| Situation (2025 NJ gross income) | Under 65 | Age 65+ |
|---|---|---|
| Homeowner, income up to $150,000 | $1,500 | $1,750 |
| Homeowner, income $150,001–$250,000 | $1,000 | $1,250 |
| Homeowner, income over $250,000 | Not eligible | Not eligible |
| Renter, income up to $150,000 | $450 | $700 |
The extra $250 for seniors applies to anyone who turned 65 by December 31 of the benefit year. A useful feature: the state files automatically for most homeowners under 65 and renters who received a benefit confirmation letter, so if your situation hasn't changed, you may not need to do anything. Seniors, on the other hand, must file, more on that below.
Senior Freeze: Locking In Your Tax Level
The Senior Freeze (officially the Property Tax Reimbursement) doesn't actually freeze your bill. Your town still raises your taxes; the state then reimburses you the difference between what you're billed now and what you were billed in your "base year," the first year you qualified. Because taxes in New Jersey rise steadily, this benefit grows every year you stay in the program.
To qualify for the current cycle you must:
- Be 65 or older (or receiving federal Social Security disability benefits)
- Have owned and lived in your home for at least three years, and still live there
- Have income at or below the annual limit: $172,475 for 2025 ($168,268 for 2024). This limit rises with inflation each year and counts all income for both spouses
Example: You qualified in 2020 when your bill was $9,000. Your bill is now $10,400. Your reimbursement check is $1,400, and if your bill rises again next year, next year's check will be bigger. This is why it pays to enroll as early as possible: the earlier your base year, the larger every future reimbursement.
One forgiving detail: if your income exceeds the limit for a single year, you don't lose your base year permanently. You can skip that year and re-enter with your original base intact.
Stay NJ: The New 50% Benefit
Stay NJ is the newest program, and the most generous. It's designed so that senior homeowners (65+) pay no more than half of their property tax bill, with the state covering the rest up to a cap. The first checks went out in early 2026, paid in quarterly installments.
The program was originally enacted with a $500,000 income limit, but the state budget signed in June 2026 tightened eligibility significantly. The current design, based on 2025 income:
| 2025 income | Maximum Stay NJ benefit |
|---|---|
| Up to $100,000 | $6,500 (50% of a bill up to $13,000) |
| Over $100,000 to $150,000 | $5,000 |
| Over $150,000 to $200,000 | $4,000 |
| Over $200,000 | Not eligible |
Stay NJ is for homeowners only; renters and mobile home owners aren't eligible. Unlike the Senior Freeze, homes under P.I.L.O.T. (payment in lieu of taxes) agreements do qualify.
How the Three Programs Stack
This is the part most people get wrong. Stay NJ is not simply added on top of the other two; it's a top-up, calculated last:
- Your Senior Freeze reimbursement and ANCHOR benefit are calculated first.
- If together they come to less than 50% of your property tax bill, Stay NJ pays the difference, up to your cap.
- If they already cover 50% or more of your bill, you keep them, but receive no Stay NJ payment.
Worked example: Your bill is $12,000, so the 50% target is $6,000. Your Senior Freeze check is $2,200 and your ANCHOR benefit is $1,750, totaling $3,950. Stay NJ pays the remaining $2,050 to bring you to $6,000. Your out-of-pocket property tax cost drops from $12,000 to $6,000.
One Application: The PAS-1
Until recently, each program had its own forms and deadlines. Starting with the 2024 benefit year, seniors file a single combined application, the PAS-1, which covers ANCHOR, Senior Freeze, and Stay NJ at once. The state determines what you qualify for under each program and sends a letter itemizing the amounts.
Key facts for the current season:
- Who must file: homeowners 65+ and recipients of Social Security disability. (Most homeowners under 65 and renters are filed automatically through the ANCHOR confirmation-letter process.)
- Deadline: November 2, 2026 for the 2025 benefit year.
- Payment timing: Senior Freeze checks start in mid-July, ANCHOR payments in mid-September, and Stay NJ pays quarterly (around the 15th of February, May, August, and November).
- File online for direct deposit; paper filers receive checks.
Don't Forget the Municipal Deductions
Separate from the state programs, and claimed through your municipal tax assessor rather than the PAS-1, New Jersey also offers:
- $250 senior/disabled deduction: for homeowners 65+ or permanently disabled with income under $10,000 excluding Social Security and certain pensions
- $250 veterans deduction: for honorably discharged veterans (no income limit); a senior veteran can claim both, for $500 off the bill
- 100% disabled veteran exemption: veterans with a VA-certified 100% permanent service-connected disability pay no property tax at all on their principal residence; this also extends to unremarried surviving spouses
Bottom Line
A senior homeowner in New Jersey with moderate income can realistically cut their effective property tax burden in half by combining these programs, but only the automatic ANCHOR filings happen on their own. If you're 65 or older, filing the PAS-1 every year is the single highest-return piece of paperwork in the state, and enrolling in the Senior Freeze early locks in a base year that grows in value forever. Check your county's rates and typical bills on our New Jersey property tax pages, and see our general guide to senior property tax exemptions for how other states compare.