Sherrill Cuts Property Tax Relief Eligibility In Budget Proposal

Governor Mikie Sherrill delivered her first state budget proposal on Tuesday, and as New Jersey’s budget faced a $3 billion deficit, cuts were expected to be made.

With the governor’s new $60.07 billion budget plan came alterations to the state’s property tax relief policies, specifically with the Stay NJ program.

Stay NJ is a tax relief program introduced in 2025 to help senior citizens with tax relief, with the purpose of encouraging them to stay in the Garden State upon retiring.

In its current form, the program reimburses applicants for 50 percent of their property tax bills, up to a maximum of $13,000, with a benefit cap of $6,500. To be eligible for the Stay NJ program, residents must be 65 years and older, have owned and lived in their home for the full 12 months of the fiscal year, and have an income below $500,000.

Sherrill’s new plan changes both the Stay NJ benefit amount and who is eligible to receive it.

Under the proposed budget, the Stay NJ income requirement is cut in half, meaning that the eligible seniors must have an income below $250,000, the same eligibility requirement as the ANCHOR program. Additionally, it lowers the maximum benefit from $6,500 to $4,000.

The governor says the move is a “fairer, more efficient use of taxpayer money.”

“Stay NJ is a great program – it keeps seniors, so often living on a fixed income, in their homes,” Sherrill said. “But it benefits households that make as much as $500,000 a year. I'm changing that to safeguard Stay NJ for middle-class seniors. If you make $250,000 or less, your tax relief is in this budget. That’s going to save taxpayers hundreds of millions of dollars a year.”

Additionally, the $250 bonus formerly extended to senior homeowners and renters under ANCHOR is set to expire after fiscal year 2026. Under this budget proposal, senior renters would continue to receive the $250 bonus, while many senior homeowners would continue to receive the additional benefit amount through Stay NJ instead.

Despite the changes, the budget’s property relief package is still expected to be the largest in New Jersey history, totaling roughly $4.2 billion. That includes $2.3 billion for ANCHOR, $700 million for Stay NJ, and $350 million for the Senior Freeze program.

What This Could Mean For Homeowners

Under Sherrill’s new budget, the maximum relief benefit one would receive under Stay NJ, ANCHOR, and the Senior Freeze combined still could not exceed 50 percent of your property tax bill.

In other words, anyone who pays more than $8,000 in property taxes (roughly $2,000 less than the state average) would see less relief under the proposed budget.

For example, a Stay NJ-eligible recipient who pays $10,000 in property taxes would lose $1,000 in 2026 tax savings compared to 2025 relief.

Even someone who pays $8,500 in property taxes would still see a $250 hit compared to previous Stay NJ relief.

Senior homeowners who earn more than $250,000 annually would not receive any property tax relief from the state.

Taxes and home values have gone up steadily throughout New Jersey over the past decade, regardless of what political party is in power. Statewide, the average tax bill topped $10,000 for the second time last year.

When former Republican Gov. Chris Christie and the state Legislature reached a historic deal for a 2 percent cap in 2011, the average property tax bill in New Jersey was at $7,759 for a home valued at $299,014. By the time Christie left office, the average property tax payment had risen by 13 percent.

The average tax bill in New Jersey continued to rise under former Gov. Phil Murphy, a Democrat. When Murphy first took office in 2018, the average tax bill stood at $8,767. In 2025, the average bill reached $10,570 – a 20.5 percent increase.

Criticism

Sherrill’s budget, specifically her slashes to Stay NJ, has been met with criticism from New Jersey republicans.

Assembly Republican Budget Officer Brian Rumpf called Stay NJ “the most significant program for tax savings for seniors in this state.”

“We are eliminating a huge swath of New Jerseyans that are anticipating their first check in the mail in a couple of months,” Rumpf said. “Well, unfortunately, we have news for those New Jerseyans: Not only is it their first check, but with Governor Sherrill’s plan, it’s likely to be their last. And that’s really unfortunate.”

According to the New Jersey Department of the Treasury, roughly 10 percent of the estimated 438,000 homeowners eligible for the Stay NJ program would lose the entire benefit under the proposed budget.

Also expressing concern about the property tax relief changes are nonprofits, including the American Association of Retired Persons (AARP). AARP is a nearly 70-year-old organization dedicated to strengthening Medicare, Social Security, and lowering drug prices, while providing discounts on insurance, travel, and services for aging adults.

“For many New Jerseyans, property tax relief programs like Stay NJ, ANCHOR, and Senior Freeze are essential. They are the difference between staying in their homes or being forced to move,” said AARP New Jersey State Director Chris Widelo. “The Stay NJ program was created to address New Jersey’s affordability crisis and deliver on a commitment to older residents who want to age in place. As policymakers consider adjustments, it is critical that the program does not reduce the annual benefit and continues to provide meaningful relief while keeping the promise made to the people counting on it.”

Sherrill’s proposed budget is now subject to review and negotiations, and the final product is due July 1. Read More — Sherrill Looks To End Crisis: 5 Takeaways From NJ Budget Address

Eligible residents are still able to claim up to $6,500 in Stay NJ property tax reimbursement for the 2025 fiscal year. Read More — Major NJ Property Tax Relief Available Now: How To Get Your Cut

— With reporting by Eric Kiefer

Related: Affordability Takes Center Stage In NJ Budget Address