What is the New Jersey ANCHOR Program?
The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program provides a direct property tax rebate to eligible residents, both homeowners and renters. This program replaced the former Homestead Rebate and aims to help offset property tax and rental costs. Unlike the Senior Freeze, ANCHOR is available to a broader age range, with benefit amounts varying based on income and age.
To be eligible for ANCHOR, applicants must meet specific criteria for a designated base year.
Eligibility for ANCHOR Homeowners
- Must have owned and occupied a home in New Jersey that was their principal residence on October 1 of the application year.
- The property must be subject to property taxes.
- Must have had a gross New Jersey income up to $250,000.
- Residents 65 or older may receive a higher rebate.
Eligibility for ANCHOR Renters
- Must have rented and occupied a primary residence in New Jersey on October 1 of the application year.
- Your name must be on the lease or rental agreement, and you must have paid rent.
- The rental property must be subject to local property taxes.
- Must have had a gross New Jersey income up to $150,000.
What is the New Jersey Senior Freeze Program?
The Senior Freeze program, officially known as the Property Tax Reimbursement, assists eligible seniors and disabled individuals by reimbursing them for increases in property taxes. The reimbursement amount is the difference between the property taxes paid in a "base year" (the first year of qualification) and the current application year. This program is specifically for homeowners, unlike ANCHOR.
Eligibility for Senior Freeze Homeowners
- Must have been 65 or older or receiving federal Social Security disability benefits by December 31 of the base year.
- Must have continuously owned and lived in the same New Jersey home for a specified period (e.g., since December 31, 2021, for the 2024 application).
- Must have met annual income limits for each year from the base year through the application year.
- The property must be subject to property taxes.
Key Details of the Senior Freeze
- Benefit Type: Reimburses increases in property taxes, not a flat rebate.
- Continuous Eligibility: Requires meeting criteria for all years from the base year onward.
- Income Limits: Generally lower and stricter than ANCHOR's and change annually.
- No Renter Benefit: Only available to homeowners and mobile homeowners.
Can you receive both ANCHOR and Senior Freeze?
Yes, eligible individuals can receive both ANCHOR and Senior Freeze benefits. A combined application form (Form PAS-1) is available for those 65 or older or receiving Social Security disability, which also includes the Stay NJ benefit. The total property tax relief received cannot exceed the total property taxes paid for the year.
Comparison Table: ANCHOR vs. Senior Freeze
| Feature | ANCHOR Program | Senior Freeze Program (Property Tax Reimbursement) |
|---|---|---|
| Type of Relief | A direct, flat-rate property tax rebate. | A reimbursement for the increase in property taxes once enrolled. |
| Eligibility | Open to homeowners and renters of various ages and income levels. | Limited to eligible seniors and disabled persons. |
| Benefit Calculation | A fixed amount based on income and age. | Calculated as the difference between the current year's taxes and a "base year"'s taxes. |
| Residency Requirement | Own or rent a principal residence on October 1 of the application year. | Continuous ownership and occupancy of the same principal residence for at least three years. |
| Renter Eligibility | Yes, renters can qualify. | No, renters are not eligible. |
| Income Limits | Higher income thresholds for homeowners (up to $250k) and renters (up to $150k). | Lower income thresholds that are adjusted annually. |
| Base Year | Not applicable; based on income for the application year. | A crucial component; the first year of eligibility establishes the benchmark for future reimbursements. |
Conclusion
In essence, ANCHOR provides a direct rebate to a wide range of eligible homeowners and renters based on income, while Senior Freeze offers a property tax increase reimbursement specifically for eligible seniors and disabled homeowners. Understanding these fundamental differences is key for New Jersey residents seeking property tax relief. More detailed information can be found on the New Jersey Division of Taxation website.
