The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) initiative is a program that provides property tax refund in the state of New Jersey. This program succeeds the previous Homestead Benefit, effective in 2022. It is designed to provide tax relief to homeowners and renters who meet specific residency and income requirements.
For the 2025 tax year, eligibility, and amounts are calculated based on information from 2024. Benefits distributed range from $450 to $1,750, determined by each applicant’s individual circumstances.
What to know about the ANCHOR tax refunds
The administration of the program falls on the NJ’s Department of the Treasury, Division of Taxation. The central objective is to provide tax relief to residents who own or rent a primary residence within the state and who also meet certain income thresholds.
Since its implementation, the program has been hailed as the largest property tax relief initiative in state history.
Payments for this benefit vary depending on the applicant’s status, whether they are a homeowner or renter. Gross income for the year 2024 and the individual’s age are the primary factors in the calculation. Residents over 65 or those receiving Social Security disability benefits are eligible for a supplemental payment of $250.
Requirements to claim up to $1,750 in NJ
To access ANCHOR program benefits in 2025, applicants must demonstrate compliance with a series of criteria based on fiscal year 2024. For those owners, it is imperative to have owned and occupied a home in New Jersey as a principal residence as of October 1, 2024.
The property must be subject to local taxes; those exempt under Payments in Lieu of Taxes (P.I.L.O.T.) agreements are excluded. The gross income reported in New Jersey for 2024 cannot exceed the figure of $250,000.
Special cases, such as residents of continuing care retirement communities who pay a proportional share of property taxes under their contract, are considered homeowners.
Likewise, individuals temporarily residing in assisted living facilities but maintaining their primary residence are eligible, provided they have not permanently changed their residence. For tenants, eligibility requires having rented and occupied a property as their primary residence by October 1, 2024.
The applicant’s name must appear on the lease. The rented property must be subject to local taxes, excluding those exempt from taxes, such as residences on college campuses. The gross income limit for renters is set at $150,000 for the year 2024. Estates of eligible owners who died on or after October 1, 2024, may submit an application by attaching the relevant documentation, such as a death certificate.
The list of tax refunds amounts
Benefit amounts for 2025 are broken down by the applicant’s status and income. Homeowners with a gross income of up to $150,000 are entitled to a payment of $1,500. Those with incomes between $150,001 and $250,000 will receive $1,000. Individuals aged 65 or older as of December 31, 2024, will receive a supplement of $250. This means a senior homeowner with an income of $120,000 would receive a total of $1,750.
For tenants, all eligible individuals receive a base payment of $450. Tenants who are 65 years of age or older as of December 31, 2024, will receive the same supplement of $250, totaling $700. There is an additional credit of up to $50 for renters aged 65 and older who are not required to file a New Jersey gross income tax return (NJ-1040).
The total of all tax relief benefits received cannot exceed the amount of property taxes paid on the primary residence for the same year.
The application process for the ANCHOR program has undergone modifications for the year 2025. The Division of Taxation will automatically submit applications for most homeowners and renters under the age of 65 who do not receive Social Security disability benefits. It will use the information from their 2021 application. Beginning August 13, 2025, these applicants began receiving an ANCHOR Benefit Confirmation Letter.
If personal information, such as banking details, remains unchanged, no action is required. If an applicant needs to update their information for direct deposit or prefers a paper check, a new application must be submitted by September 15, 2025. Those who do not receive this letter, including new applicants or those with substantial changes to their information, must submit a manual application. Residents aged 65 or older or those receiving disability benefits must use the PAS-1 form.
A notable change in 2025 is the elimination of ID numbers and PINs. Identity verification is now performed exclusively through the ID.me system. All online applicants must complete this process.
Applicants must have their 2024 property tax details and the gross income reported on their 2024 NJ-1040 return available. Applications can be submitted online through the official portal or by mail.
The schedule established by the Division of Taxation outlines specific milestones for the ANCHOR program process. The mailing of Benefit Confirmation Letters began on August 13, 2025.
The deadline for recipients of these letters to update their banking information or request a paper check is September 15, 2025. The online submission period for manual applications began in mid-August 2025.
The absolute deadline for submitting any new application, whether online or by mail, is October 31, 2025. The distribution of payments will begin on September 15, 2025, and is ongoing. Most applicants can expect to receive their funds within 90 days of applying, provided no additional information is required. Payments for the majority of recipients are scheduled to begin in November 2025.
