Who qualifies for New Jersey’s ANCHOR tax relief? Key income rules, benefits and filing details for 2025

A LARGE number of New Jersey residents are set to receive tax relief payments as part of the Affordable New Jersey Communities for Homeowners and Renters, or ANCHOR, program. Last year, more than 2 million rebates totalling $2.3 billion were issued by the New Jersey Department of the Treasury as part of this program.

What is ANCHOR?

This tax relief applies to people who live in the state as owners or renters of premises. According to whyy.org, Marita R. Sciarrotta, director of the New Jersey Division of Taxation, explained that homeowners earning $250,000 or less are entitled to tax benefits of $1,000. Those who happen to be above 65 will be eligible to receive $250.

Those houseowners who are making $150,000 or less are entitled to an even larger payment of $1,500, with an additional $250 coming their way for those over 65. Renters will also receive benefits, as pointed out by Sciarrotta.

“All tenants are entitled to, or eligible for $450; if they are over the age of 65, they are entitled to another $250,” she said, as per whyy.org.

The same website also reported that around one million auto-file letters are already in the process of being mailed by the Department of the Treasury.

How to avail of ANCHOR payments?

According to the Government of New Jersey’s official website, the ANCHOR payments are based on three factors – residency, income, and age. For the tax year 2024, the website informs, the ANCHOR Benefit Confirmation Letters were mailed on August 13, 2025.

The recipients of these letters were people who met the requirements for being beneficiaries. In case they needed to update their banking information or decline the benefits or wanted a paper check, they had to apply by 15 September.

Those who qualify for ANCHOR benefits but did not receive the letter could apply till 31 October.
Importance of ANCHOR

The ANCHOR program has been running for four years. It has been a source of huge relief to people who have faced financial difficulties in the present economic environment.

“They’re living on the edge right now, they’re really stretched,” James Hughes, dean emeritus of the Edward J. Bloustein School of Planning and Public Policy, said about the low-income households receiving these benefits. “We’re in a higher inflation era both now with high energy costs and for what may be coming, because of the (Trump administration) tariffs, any benefit they can receive will be helpful,” whyy.org quoted him as saying.

Residents of New Jersey started receiving the money in their accounts or in the form of mailed cheques in September and the process will continue in the coming months. For households struggling to make ends meet, this will bring a much-needed Christmas cheer.

FAQs

What does ANCHOR stand for?

It stands for Affordable New Jersey Communities for Homeowners and Renters program.

Who is eligible to receive ANCHOR benefits?

Those who live in New Jersey in rented or self-owned houses and earn $250,000 or less.