S.6, New Jersey—Personal Income, Property Taxes: Property Tax Credit Program RevisedNovember 6, 2024

New Jersey has updated its:

• homestead property tax benefit program;
• the homestead property tax reimbursement program; and
• the Stay NJ property tax credit program.

The amendments adjust the eligibility for property tax credits and the annual rebate, alter the age and residency requirements to qualify for the program, and established a uniform definition of income for all three programs.

Currently, the maximum credit granted is 50% of an eligible taxpayer’s property tax bill, not to exceed $6,500 for tax year 2026, with annual increases based on the annual percentage increase in the average residential property tax bill. The amendments maintain the credit limits, but an eligible claimant is now entitled to receive a Stay NJ property tax credit, ANCHOR property tax rebate, and homestead property tax reimbursement in the same year. However, the amount of the Stay NJ property tax credit, together with the combined amount of the ANCHOR property tax rebate and the homestead property tax reimbursement received by a taxpayer for the tax year, may not exceed the maximum allowable credit amount for that tax year. If the sum total of an eligible claimant’s homestead property tax reimbursement and ANCHOR property tax rebate exceeds the lesser of 50% of their property tax bill or the maximum benefit amount, then the eligible claimant will receive the full amount of the homestead property tax reimbursement and ANCHOR property tax rebate for that tax year, but will not receive an additional Stay NJ property tax credit.

The application process for the program has also been streamlined, and will now be administered as a combined single application form from February 1, 2025.

Ch. 88 (A.B. 4706), Laws 2024, effective November 1, 2024

Source: ©2024 CCH AnswerConnect. All Rights Reserved.