The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program is one of the most important property tax relief schemes in New Jersey. Launched in 2022 to replace the Homestead Benefit, it aims to reduce the property tax burden for eligible homeowners and renters.
For the 2025 tax year, the benefit amounts are based on income and residency details from 2024, with refunds ranging from $450 to $1,750.
What is the ANCHOR Tax Refund?
The ANCHOR program is managed by the New Jersey Department of the Treasury, Division of Taxation. Its main purpose is to support residents who own or rent a primary home in the state and meet certain income limits.
It has been described as the largest property tax relief initiative in New Jersey’s history, offering direct financial support to residents struggling with high taxes. Both homeowners and renters can qualify, but the benefit amount depends on age, income, and living status.
Eligibility Requirements for Homeowners
To qualify in 2025, homeowners must meet these conditions:
Owned and lived in a New Jersey home as a primary residence on October 1, 2024.
The property must be subject to local property taxes (not covered by P.I.L.O.T. agreements).
Gross income for 2024 must be $250,000 or less.
Special cases, such as residents in continuing care communities or those temporarily in assisted living, may still qualify if the home remains their primary residence.
Homeowners who are 65 or older, or those receiving Social Security disability benefits, receive an additional $250.
Eligibility Requirements for Renters
Renters can also receive tax relief through the ANCHOR program if they:
Rented and lived in a primary residence in New Jersey as of October 1, 2024.
Have their name on the lease.
Lived in a property subject to local property taxes (college dorms or tax-exempt properties do not qualify).
Had gross income of $150,000 or less in 2024.
Estates of eligible homeowners who died on or after October 1, 2024, can also apply with proper documents, like a death certificate.
How Much Can You Get Back?
The benefit amounts depend on income and applicant type:
| Applicant Type | Income Limit | Benefit | Additional for 65+ or Disabled | Total Possible |
|---|---|---|---|---|
| Homeowner | Up to $150,000 | $1,500 | +$250 | $1,750 |
| Homeowner | $150,001 – $250,000 | $1,000 | +$250 | $1,250 |
| Renter | Up to $150,000 | $450 | +$250 | $700 |
Renters aged 65+ who are not required to file an NJ-1040 can receive an extra credit of up to $50.
One key rule: the total benefit cannot exceed the actual property tax paid on the primary home in the same year.
Application Process for 2025
The application system has changed slightly in 2025 to make things easier:
Most homeowners and renters under 65 automatically receive a Benefit Confirmation Letter starting August 13, 2025.
If no personal or banking details have changed, no action is required.
To update details or request a paper check, residents must submit an application by September 15, 2025.
Seniors (65+) and disabled applicants must use the PAS-1 form.
Manual applications are required for new applicants or those with major changes.
Another big change: ID numbers and PINs have been removed. Instead, applicants must use ID.me verification to confirm their identity online.
Applicants need their 2024 property tax information and income details from the NJ-1040 return to apply.
Important Dates to Remember
August 13, 2025: Benefit Confirmation Letters mailed.
September 15, 2025: Last date to update details or request paper check.
October 31, 2025: Final deadline for new applications (online or mail).
September 15, 2025 onwards: Payments start; most recipients will get money within 90 days.
November 2025: Majority of payments scheduled to be released.
The ANCHOR program continues to provide critical property tax relief to New Jersey residents, ensuring that both homeowners and renters get much-needed support. With benefits as high as $1,750 for eligible seniors, this initiative plays a major role in easing the financial stress caused by rising property taxes.
By understanding the rules, deadlines, and eligibility criteria, residents can make sure they don’t miss out on these refunds.
