50 Percent Senior Tax Cut Extended To Renters As NJ Legislators Strike Deal

NEW JERSEY — Lawmakers have agreed on a new property tax relief plan for senior homeowners and renters in New Jersey, after critics of the “StayNJ” plan said it was too expensive and would only benefit the wealthy.

Gov. Phil Murphy's office said he reached an agreement with Democratic legislators to provide an annual tax credit of up to 50 percent of the bill for eligible tenants and homeowners over the age of 65 who make less than $500,000 per year.

Murphy said the deal will pave the way for New Jersey to make another full pension payment, provide promised school aid money, and maintain the state surplus as lawmakers clear this hurdle on their path to approving the 2024 budget.

"This agreement says we care about out seniors in making New Jersey affordable for all," Murphy said while unveiling the plan.

Under the StayNJ plan, there will be an income cap of $500,000 on the tax relief plan, and the program provide a maximum benefit of up to $6,500 — shutting out some of New Jersey's wealthiest homeowners, whom Murphy and other critics say don't need more money anyway.

"The relief is expected to be delivered in the form of a direct credit on property tax bills in the first quarter of 2026," Murphy's office said.

Also, Murphy and Democratic leaders say there will be an immediate $250 per year increase for seniors under the ANCHOR program (Affordable New Jersey Communities for Homeowners and Renters), while StayNJ is implemented.

This means eligible senior renters can get up to $700 in tax relief per year (increased from $450), and homeowners will receive either $1,250 or $1,750 depending on their income.

Nearly two in five New Jerseyans aged 50 and older have difficulty paying their property taxes each month, according to research from AARP New Jersey. And, 60 percent of these residents pay at least $9,000 annually in property taxes.

“No one should have to choose between retiring in the place they’ve long called home and their ability to afford to age here,” Murphy said in a statement.

AARP New Jersey commended lawmakers on coming together on an agreement, said Director of Advocacy Evelyn Liebman.

“The framework of the deal will provide the kind of bold and transformational relief that so many New Jerseyans – who are also struggling to afford rising prices on everything from groceries to gas along with the highest prescription drug prices in the world – need to stay in New Jersey," Liebman said. "We look forward to seeing the details of the agreement soon, and we stand ready to work with our elected leaders to move this program forward.”

The StayNJ plan is moving through the legislature as a separate item from the budget.

The original bill proposed by Assembly Speaker Craig Coughlin (D-NJ-19) gave eligible homeowners who are 65 years of age or older a 50 percent property tax credit, up to a maximum of $10,000, with no income limit. Senate President Nicholas Scutari (D-NJ-22) also backed the plan.

However, the administration of fellow Democrat Murphy took a strong stance against the plan, questioning its fairness and financial sustainability. The governor, a multi-millionaire and former Goldman Sachs executive, would have personally collected $10,000 that he doesn’t need under the original bill, as his staff noted.

The state Office of Legislative Services estimated that the StayNJ plan would result in additional costs to the state of between $1.5 billion and $1.8 billion in fiscal year 2025, if the maximum refund had remained set at $10,000 with no income eligibility cap.

Murphy's office said a to-be-determined commission will decide how to implement and apply StayNJ, so Garden State seniors have a streamlined system to apply. This commission "will also be charged with simplifying and aligning the current ANCHOR and Senior Freeze programs to determine the best way to deliver the property tax cut for senior homeowners while ensuring renters are prioritized as well," the governor's office said.

Officials said it will take an additional $140 million to boost aid through the ANCHOR program this year, and they have set aside $600 million to fund the tax cut plan.

"The leaders have also agreed to place $100 million, $200 million, $300 million, respectively, in a lock box over the next three fiscal years to offset the total cost for the first full year of implementing StayNJ spanning calendar year 2026," Murphy's office added.

StayNJ could add more than $1 billion in new spending by the time it operates, though the cost may be offset by reduced participation in the ANCHOR and homestead property tax reimbursement program according to the OLS.

In addition to the StayNJ program, Murphy touted the legislature's commitment to making a third consecutive full payment to the state pension system, providing aid for K-12 education, and adding to the state surplus as lawmakers continue hashing out next year's state budget.

This article contains reporting from Patch’s Eric Kiefer.