The New Jersey legislature has provided a property tax rebate to offset the property taxes paid by the homeowners and tenants on their principal residence through ANCHOR. The ANCHOR tax rebate application is open till 30 November 2024, the NJ residents who wish to unlock the property tax rebate can check the article for more details.
NJ Property Tax Rebate 2024
New Jersey homeowners or residents pay the highest property taxes for their principal residences. The NJ government offers the tax relief program ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) replacing several tax relief programs in 2022.
The tax relief programs aim to provide financial relief to the residents who paid their property taxes through ANCHOR.
For 2024, the government has extended the ANCHOR benefits for the homeowners or tenants who met the income limit and paid the property tax for the eligible residents for the assessment year 2021. The Phil Murphy government has included $2 billion for the property tax relief in their Fiscal year 2025 budget.
The NJ Division of Tax must have sent out the mail with instructions to eligible homeowners or tenants to claim the ANCHOR tax rebate by the end of August 2024. The 2024 ANCHOR tax relief program is based on income, residency, and age from 2021, the NJ residents need to claim the rebate before the deadline, 30 November 2024.
Senior residents aged 65 or over and disabled persons can also avail of the property tax rebate through Senior Freeze (Property Tax reimbursement), which they must file before 31 October 2024.
NJ Property Tax Rebate 2024 Eligibility Criteria
To claim the NJ Property tax rebate, you should meet the following eligible requirements of the program:
For Homestead owner:
- You should be a permanent New Jersey resident.
- You had or have a principal residence that you owned in New Jersey on 01 October 2021.
- You have paid the 2021 property taxes on that home.
- Your gross income in 2021 should not be more than $250,000 in tax year
For renter:
- You were a New Jersey resident, your name was on the rental agreement or lease where you lived.
- You rented a property or home in NJ which was your principal residence on 01 October 2021.
- Your 2021 gross income should not exceed $150,000, and the property you rented is subjected to local property taxes.
Important Note: If the residents don’t have their 2021 Income tax return gross income, they can enter their gross income calculated in the 2023 income tax return.
Eligible principal residences that qualify for the NJ property tax rebate are:
- Mobile homes (owned or rented)
- Rental Units operated under the Payment of Lieu taxes with their municipality
- Rented a condominium unit in the cooperative housing complex
NJ Property Tax Rebate 2024 Payout
As we have mentioned before, this year ANCHOR tax relief payments will be based on the 2021 gross income. Under the 2025 FY budget, the government has included the $ 2 billion for 2021 tax year. Hence, the benefit amount of ANCHOR will be based on the 2021 gross income and this income hike.
The elderly citizens of NJ of 65 years of age or over will receive an additional $250. The NJ residents can expect the following tax rebate through the ANCHOR program based on their gross income in 2021:
| Income limit | Age lower than 65 | 65 age or over |
| $150,000 or less | $1,500 | $1750 |
| $150001 to $250,000 | $1,000 | $1250 |
The NJ residents should remember the tax rebates can never be more than the property tax you paid for your principal residence.
One more thing, the NJ homeowners age 65 or over who are not obliged to file the income tax return are entitled to receive the property tax credit of $50. If the eligible elderly do not claim this benefit, the additional credit will be added to their ANCHOR payment.
Documents required to apply for the NJ Property tax rebates
The NJ residents with eligible principal residence who meet the eligibility requirement for the 2024 ANCHOR property tax relief programs should prepare the following documents for application:
- Social Security Number (SSN)/ Individual Taxpayer Identification number of yours or your spouse (if applicable)
- Gross Income Form Line of 29 of 2021 or 2023 (NJ 1040)
- 2021 income tax filing status.
- Account number
- If you shared the apartment with anyone other than your spouse, the names of all the renters
The authority will ask the applicants if their spouse, or they were blind or disabled on 31 December 2021.
How to claim the NJ Property Tax Rebate 2024?
The NJ residents who wish to claim the NJ property tax relief ANCHOR benefits should file their application but they should first keep the following things in mind:
- If you received the ANCHOR confirmation last year and receive the ANCHOR benefit letter by the end of August 2024, the authority will automatically reapply for the rebate through your last year’s info.
- However, if you have any changes to report in your last year’s info, you must make the updates through the new application by 15 September 2024.
The NJ residents can follow the below steps to apply for the ANCHOR benefit on the NJ Division of Tax website:
- First, be certain of your eligibility for the NJ property tax relief and click the ANCHOR direct link
- Next, download the application form from the Applications Instruction section ANCHOR-H (for homestead) and ANCHOR-T (for tenants).
- Next, fill out the form carefully, attach the supporting documents with your application, and send the application form to the following address:
- ANCHOR Application
- Revenue Processing Center
- PO Box 636
- Trenton, New Jersey
- 08646 0636
The NJ property tax rebates or tax relief program has reduced the financial stress that arises due to higher property taxes for homeowners or tenants through ANCHOR benefits and for seniors and disabled persons through Senior Freeze. The NJ residents who qualify for the ANCHOR benefits should apply before 30 November 2024 and elderly age 65 or over before 31 October 2024.
