ANCHOR and Stay NJ 2026: Why Property Tax Relief for Homeowners Could Be Cut
The 2026 New Jersey budget proposal puts the promised $6,500 property tax credit at risk for thousands of homeowners.
Just as the first Stay NJ checks arrived in mailboxes last month, the program's future has been thrown into question. The new Stay NJ tax relief is facing significant cuts in Gov. Mikie Sherrill's inaugural 2026 budget proposal.
Stay NJ is the third in a series of New Jersey property tax relief programs, including the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program and NJ "Senior Freeze." In the last year, these programs have provided a record-breaking $4.3 billion in direct property tax relief, including $600 million from Stay NJ alone.
"Stay NJ is a great program," Gov. Sherrill said in a press release, "...but it benefits households that make as much as $500,000 a year. I'm changing that to safeguard Stay NJ for middle-class seniors."
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Yet the proposed tightening of income thresholds on Stay NJ recipients and the expiration of a certain ANCHOR bonus could mean some residents miss out on New Jersey property tax relief. Here's what to know.
ANCHOR and Stay NJ property tax relief
Sherrill proposed tax cuts to the following property tax relief programs as part of the 2026-2027 New Jersey budget plan:
- Stay NJ. Lowering the income cutoff from $500,000 to $250,000, and cutting the maximum property tax savings from $6,500 to $4,000.
- ANCHOR. Allowing the bonus $250 in tax savings to expire for homeowners 65 and older, but renters of that same age would still qualify.
No proposed cuts would impact the New Jersey "Senior Freeze" program.
As a consequence of the proposed property tax cuts, some New Jersey taxpayers would see their maximum credit slashed. For instance:
- An older adult paying $20,000 in property taxes, if eligible for all New Jersey property tax relief, could lose $2,500 in tax savings.
- Another older adult paying $10,000 in property taxes, if eligible for all New Jersey property tax relief, could lose $1,000 in tax savings.
- Older adults earning between $250,000 and $500,000 would get $0 in property tax savings under the new plan.
The new property tax provisions are expected to save $500 million in costs for the new fiscal year, according to the proposed budget plan, though not everyone is on board with cutting property tax relief benefits.
Property tax in New Jersey is the highest ever
While the New Jersey property tax relief cuts are part of a broader $60.7 billion plan to aid the state's deficit crisis (more on that later), some argue that scaling back relief is counterproductive to the Garden State's long-term affordability goals.
"The last thing that should be cut is property tax relief," state budget officer Sen. Declan O'Scanlon (R–Monmouth), reportedly told local news outlet NJ101.5. "Instead, it's one of the first things cut…It kills me."
New Jersey property taxes are among the highest in the nation. According to the state Department of Community Affairs, the average property tax bill hit a record high of $10,560 last year. Consequently, property taxes remain the primary driver of "out-migration" as residents flee for more tax-friendly states.
Programs like ANCHOR and "Senior Freeze" were established to lower out-migration rates, with the Stay NJ program explicitly designed to help older adults "age in place."
"For many New Jerseyans, property tax relief programs like Stay NJ, ANCHOR, and Senior Freeze are essential," Chris Widelo, State Director of AARP New Jersey, said in a statement following Sherrill's state budget proposal.
"[These benefits] are the difference between staying in their homes or being forced to move," Widelo added.
Yet proposed tax relief cuts are expected to help slash the state's $3 billion structural budget deficit.
According to Sherrill's office, the state's current fiscal crisis is the result of a "perfect storm," including the expiration of COVID-era federal subsidies, years of underfunded state pension payments, and funding cuts implemented by the Trump administration.
Without the proposed property tax savings cuts and other budgetary maneuvers, Sherrill warns that New Jersey state coffers could be depleted within two years.
New Jersey state tax proposal
The property tax savings cuts aren't the only provisions included in the New Jersey budget proposal. Sherrill's proposed budget also includes:
- Various corporate fees, like a new per-employee fee for companies with at least 50 workers enrolled in NJ FamilyCare (Medicaid) who do not provide health insurance, and new limits on net operating losses and the alternative business calculation tax deduction.
- A record-breaking $12.4 billion on K-12 school aid, and $1.4 billion for preschool education.
- Over $7 billion toward New Jersey's state pension system.
- More than $100 million is being allocated to the state's Supplemental Nutrition Assistance Program (SNAP) and Medicaid coverage in counties affected by federal funding cuts.
The New Jersey budget proposal has a long way to go before finalization. The state's Assembly and Senate will hold hearings before drafting and voting on a final budget bill. The finalized bill will then move to Sherrill's desk for signature or veto by June 30, 2027, New Jersey's deadline for a new state fiscal budget.
Stay tuned for updates.
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