ANCHOR and Stay NJ 2026: Why Property Tax Relief for Homeowners Could Be Cut

The 2026 New Jersey budget proposal puts the promised $6,500 property tax credit at risk for thousands of homeowners. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Delivered dailyKiplinger TodayProfit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. 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The new Stay NJ tax relief is facing significant cuts in Gov. Mikie Sherrill's inaugural 2026 budget proposal.Stay NJ is the third in a series of New Jersey property tax relief programs, including the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program and NJ "Senior Freeze." In the last year, these programs have provided a record-breaking $4.3 billion in direct property tax relief, including $600 million from Stay NJ alone."Stay NJ is a great program," Gov. Sherrill said in a press release, "...but it benefits households that make as much as $500,000 a year. I'm changing that to safeguard Stay NJ for middle-class seniors."Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail.Yet the proposed tightening of income thresholds on Stay NJ recipients and the expiration of a certain ANCHOR bonus could mean some residents miss out on New Jersey property tax relief. Here's what to know.Sherrill proposed tax cuts to the following property tax relief programs as part of the 2026-2027 New Jersey budget plan:No proposed cuts would impact the New Jersey "Senior Freeze" program.As a consequence of the proposed property tax cuts, some New Jersey taxpayers would see their maximum credit slashed. For instance:The new property tax provisions are expected to save $500 million in costs for the new fiscal year, according to the proposed budget plan, though not everyone is on board with cutting property tax relief benefits.While the New Jersey property tax relief cuts are part of a broader $60.7 billion plan to aid the state's deficit crisis (more on that later), some argue that scaling back relief is counterproductive to the Garden State's long-term affordability goals."The last thing that should be cut is property tax relief," state budget officer Sen. Declan O'Scanlon (R–Monmouth), reportedly told local news outlet NJ101.5. "Instead, it's one of the first things cut…It kills me."New Jersey property taxes are among the highest in the nation. According to the state Department of Community Affairs, the average property tax bill hit a record high of $10,560 last year. Consequently, property taxes remain the primary driver of "out-migration" as residents flee for more tax-friendly states.Programs like ANCHOR and "Senior Freeze" were established to lower out-migration rates, with the Stay NJ program explicitly designed to help older adults "age in place.""For many New Jerseyans, property tax relief programs like Stay NJ, ANCHOR, and Senior Freeze are essential," Chris Widelo, State Director of AARP New Jersey, said in a statement following Sherrill's state budget proposal."[These benefits] are the difference between staying in their homes or being forced to move," Widelo added.Yet proposed tax relief cuts are expected to help slash the state's $3 billion structural budget deficit.According to Sherrill's office, the state's current fiscal crisis is the result of a "perfect storm," including the expiration of COVID-era federal subsidies, years of underfunded state pension payments, and funding cuts implemented by the Trump administration.Without the proposed property tax savings cuts and other budgetary maneuvers, Sherrill warns that New Jersey state coffers could be depleted within two years.The property tax savings cuts aren't the only provisions included in the New Jersey budget proposal. Sherrill's proposed budget also includes:The New Jersey budget proposal has a long way to go before finalization. The state's Assembly and Senate will hold hearings before drafting and voting on a final budget bill. The finalized bill will then move to Sherrill's desk for signature or veto by June 30, 2027, New Jersey's deadline for a new state fiscal budget.Stay tuned for updates.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.