The state of New Jersey is processing the final payments for the ANCHOR tax relief program for fiscal year 2024, with additional refunds expected to reach some residents during December 2025. This distribution concludes the annual cycle of aid for eligible homeowners and renters.
The initiative, which began in 2021, replaced the Homestead Rebate and allocates funds to alleviate the burden of property taxes, which in New Jersey are among the highest in the nation.
The administration has allocated a budget to cover more than two million households in this round. Payments have been made gradually since mid-September, based on a continuous processing system.
ANCHOR Tax Rebate NJ: Final Payments Arriving in December
The program is designed to provide direct economic relief, with fixed amounts that are not subject to federal taxes. The completion of this distribution phase coincides with the end-of-year period, a time when many recipients adjust their financial projections. Payments are made via direct deposit or physical check, with the former being significantly faster.
December is the final month for issuing refunds that have experienced delays due to verification or data reconciliation processes. No further payments are expected to be issued beyond December 31 for applications corresponding to the current fiscal year.
Eligibility Criteria for ANCHOR Property Tax Rebates in New Jersey
Eligibility for the ANCHOR benefit is determined by a set of parameters defined by the New Jersey Division of Taxation. The fundamental requirement is that the property served as the applicant’s primary residence as of October 1, 2024.
This condition expressly excludes second homes and investment properties. The regulations also distinguish between owner-occupant and renter status, establishing separate income thresholds for each group.
For homeowners, the gross income reported on Form NJ-1040 must not exceed $250,000 for 2024. They must own and occupy the dwelling, which must be subject to local property taxes. This category includes residents of condominiums, co-ops, and certain retirement communities.
For renters, the gross income threshold is $150,000 for 2024. They must have a lease in their name, and the rented unit must be a property subject to property taxes.
In cases where the potential beneficiary dies after October 1, 2024, the application may be submitted by the surviving spouse or the executor of the estate, upon presentation of the corresponding legal documentation. The calculated benefit will never exceed the total amount of property taxes actually paid during the reference tax year.
Allocation of Amounts and Component for Older People
The reimbursement amounts are fixed, determined by the applicant’s status (owner or renter), gross income level, and age. There is an additional bonus specifically for senior citizens and some people with disabilities. This supplement amounts to $250 and is added to the corresponding base amount.
The base amounts for fiscal year 2024 are structured as follows: Homeowners with incomes of $150,000 or less receive $1,500. If they are age 65 or older or receive Social Security disability benefits, the total amount is $1,750.
For homeowners with incomes between $150,001 and $250,000, the base amount is $1,000, which increases to $1,250 if they qualify for the additional bonus. Renters with incomes up to $150,000 receive $450, an amount that increases to $700 for those who are age 65 or older or have a recognized disability.
This structure aims to provide proportionally greater support to older adults, a demographic that often relies on fixed incomes. The relief provided can represent a significant percentage of annual housing expenses for this group. The allowance is not tied to the exact amount of tax paid but operates as a standardized benefit.
How to Apply for the ANCHOR Rebate in New Jersey
The application period for benefits for fiscal year 2024 ended on October 31, 2025. A large number of returning beneficiaries were automatically processed by the system without any action required on their part. Those who needed to apply, particularly seniors or first-time applicants, could do so through the official website, by phone, or by submitting a paper form.
Identity verification for online applications was carried out through the platform ID.me which offers a Spanish-language option. Applicants were required to provide their Social Security number and a valid identification document.
The direct deposit option was recommended by tax authorities to expedite the receipt of funds, reducing wait times and the risks associated with postal mail.
Payments began being distributed on September 15, 2025. While most electronic deposits were completed quickly, physical checks require additional processing and shipping time. The refunds being issued in December primarily correspond to cases that required manual review, verification of supplementary documentation, or reconciliation with other outstanding state tax obligations.
