New Jersey is known for some of the highest property taxes in the country, and for many retirees on a fixed income they are the biggest obstacle to staying in the homes they love. Fortunately, the state offers several relief programs that can return meaningful money to eligible residents each year.
Many households miss out simply because the programs require an application. Understanding the basics helps you claim every benefit you qualify for and plan your future budget with more confidence.
The ANCHOR program
The Affordable New Jersey Communities for Homeowners and Renters program, known as ANCHOR, provides an annual benefit to eligible New Jersey residents who owned or rented their primary residence and met income limits for the year in question. Both homeowners and renters can qualify, and seniors generally receive an additional amount on top of the standard benefit.
Applications are handled by the New Jersey Division of Taxation. Many returning applicants receive a mailed application with an identification number, while others can apply online or by paper. Filing deadlines apply each year, so keep an eye on the state's announcements.
A single application each year can put real money back into a retirement budget.
The Senior Freeze and newer relief
The Senior Freeze, formally the Property Tax Reimbursement program, reimburses eligible seniors and people receiving Social Security disability benefits for increases in property taxes on their principal residence. Applicants must meet age or disability, income and New Jersey residency requirements, and must have owned and lived in the home for a minimum period. Seniors can now apply for ANCHOR and the Senior Freeze together on a combined application.
New Jersey has also created Stay NJ, a newer program intended to further reduce property taxes for qualifying senior homeowners. Because benefit amounts, income limits and timelines for these programs can change, check the Division of Taxation for the current rules before you apply, and keep copies of your property tax bills and income records.
Finally, build any relief into your long-term plan. Putting reimbursements toward healthcare costs, home maintenance or an emergency fund can make staying in your home more affordable for years to come.
The advisors at Finance Future Zone help Hackensack and Bergen County retirees plan for property taxes, income and the years ahead. Contact us for a free future planning review.
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