New Jersey is taking its first step to simplify the state’s property tax relief programs, part of a long-awaited plan to cut property tax bills for senior citizens by up to 50%.
Rather than have separate applications for ANCHOR, the Senior Freeze and the coming Stay NJ benefit, residents who are 65 and older will now have a single application with a single deadline to complete the form.
The new application, called PAS-1, went live on the state’s website on Wednesday at https://www.nj.gov/treasury/taxation/propertyreliefforms.shtml along with instructions on how to complete it.
“Online filing will be available in the next couple weeks, but for now taxpayers can download the paper application,” state Treasury Department spokeswoman Danielle Currie told NJ Advance Media. “Paper applications will also be mailed to households in the coming weeks.”
The applications will be sent to more than a million households by early March, the Treasury Department said.
“Only seniors aged 65 or older and disabled homeowners or mobile homeowners are eligible to use the PAS-1 combined application to apply for the State’s property tax relief programs,” the agency said. Non-senior homeowners, and renters, will use a separate form with more information coming this summer, it said.
For senior citizens, PAS-1 will replace the Senior Freeze and ANCHOR applications, the Treasury Department said, and it will eventually include the Stay NJ benefit, which isn’t scheduled to kick in until 2026.
The benefits will still need to be funded in the state budget this summer, the agency said.
It also noted the application doesn’t mean you’ll get your money sooner than in past years.
“It is important to note that while the new combined application will be available in February 2025 and taxpayers are encouraged to apply now, the benefits will begin to be distributed in July 2025 on a rolling basis, as is routine,” it said. “The deadline to complete the combined application is October 31, 2025.”
The combined application was one of the major recommendations of the Stay NJ Task Force, which was charged with figuring out how to make the Stay NJ program — designed to cut property taxes by up to 50%, capped at $6,500, for residents 65 and older in New Jersey who earn less than $500,000 a year — a reality.
While the single application is a big change for seniors, not much is changing for other homeowners and renters at this time.
The state said homeowners and renters can expect to receive an “ANCHOR Benefit Confirmation Letter” this summer, letting them know the state is automatically filing applications on their behalf. Those who don’t receive the confirmation letter may receive an “ANCHOR Application Mailer” inviting them to apply for the benefit. Those who receive neither will still have an opportunity to apply online for ANCHOR.
The next ANCHOR benefit has to be funded in the state budget this summer. The last benefit, paid out for the 2021 tax year, sent eligible homeowners up to $1,500 and qualifying renters $450, plus an extra $250 for both senior renters and homeowners.
The agency also said those who use the new PAS-1 application will receive letters in “late 2025″ to explain how the benefits from each program have been calculated, something that will probably be welcomed as residents try to figure out exactly how much they will get under the programs.
Under the original Stay NJ law, the maximum benefit amount when you add together ANCHOR, Senior Freeze and Stay NJ would be 50% of a homeowner’s property tax bill, capped at $6,500. For the calculation, the agency would add together your ANCHOR and Senior Freeze, and if that total was under the Stay NJ maximum, you’d get an additional payment.
But the calculation was later tweaked so those who have been receiving large Senior Freeze benefits would not lose anything under the new program. If a resident’s tax savings exceeds 50% of their property tax bill or $6,500 from ANCHOR and Senior Freeze combined, they won’t see a benefit cut, but they also won’t receive an extra Stay NJ benefit.
Another change for Senior Freeze this year are the income cut-offs. To be eligible, your total annual income must have been $168,268 or less in 2024 and $163,050 or less in 2023. You will no longer have to include proof of property taxes paid with the new application.
NJ Advance Media staff writer Brent Johnson contributed to this report.
Stories by Karin Price Mueller
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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com. Follow her on X at @KPMueller.