ANCHOR Tax Rebate's Future Uncertain As Sherrill Looks To Close Budget Gap

The Garden State is facing a $3 billion deficit as it heads into Mikie Sherrill’s inaugural budget address. And while the governor has eliminated some options for closing the gap, some painful cuts may be on the way.

“We’re not going to raise taxes on New Jerseyans," Sherrill said. "We are going to look for savings. Because together, we need to fix Trenton’s historic spending problem.”

Related: NJ Faces Severe Budget Crunch; Some Want 'Billionaire Tax' – Others Demand Cuts

But could one of those cuts be the popular ANCHOR tax rebate or the STAY NJ program? The answer, for now, is maybe.

Patch reached out to the NJ Department of the Treasury, and while they wouldn't speculate on budget line items, they did say there was no information on this year’s release.

The ANCHOR program, or the Affordable New Jersey Communities for Homeowners and Renters program, offers tax relief for owners and renters in New Jersey, replacing the former Homestead program.

The program first launched in 2022 as the largest property tax relief initiative in New Jersey history, shortly after the Garden State received $3.44 billion in COVID relief. Since its inception, ANCHOR has provided billions of dollars in property tax relief to millions of New Jersey households.

This is the program’s fifth year, with former Governor Phil Murphy signing an estimated $4.3 billion of tax relief into his budget for the 2026 fiscal year in June. $2.4 million was allocated to keep the ANCHOR program afloat.

Sherrill says federal COVID relief money over the past six years has “papered over” underlying fiscal problems, and prior administrations failed to implement long-term spending solutions.

Applications Still Available

While New Jersey faces a severe budget crunch, ANCHOR filing for the 2025 fiscal year is still available on the treasury’s website.

The final deadline to apply for ANCHOR benefits is Nov. 2. The application can be filed online here.

Residents who are submitting their own application must provide their Social Security Number or Individual Taxpayer Identification Number and their birth year. The same information is required from the applicant’s spouse/partner, if applicable.

New applicants should prepare their 2025 property tax details, including their County/Municipality Code, Block/Lot/Qualifier, and tax amounts, as well as the gross income reported on their 2025 NJ-1040.

As in previous years, eligible applicants are expected to have their applications automatically refiled by the state, for now. Application confirmation letters are expected to be sent sometime this summer.

The deadline to file the PAS-1, a single application that allows seniors to claim benefits from Senior Freeze, ANCHOR, and the new Stay NJ Program, is also Nov. 2.

Related: Major NJ Property Tax Relief Available Now: How To Get Your Cut

Rebates for the 2024 fiscal year are expected to be sent out on a rolling basis starting Sept. 15.

Check back with Patch for updates on ANCHOR and developments on New Jersey's budget.