Your Guide to Claiming Up to $1,750 with New Jersey’s ANCHOR Program

Sean

More Than a Rebate: Your Guide to Claiming Up to $1,750 with New Jersey’s ANCHOR Program

A crucial deadline is fast approaching, and it represents a window of opportunity that many in our community cannot afford to miss. The State of New Jersey has set October 31, 2025, as the final day for eligible homeowners and renters to apply for the ANCHOR property tax relief program. This is not just another government program or a minor rebate. ANCHOR, which stands for Affordable New Jersey Communities for Homeowners and Renters, is the single largest property tax relief initiative in the state’s history, having already distributed over $2.1 billion to more than 1.8 million residents in its last cycle.

For Black families across the Garden State, this program carries a particular weight. In a state burdened by some of the nation’s highest property taxes and marked by a profound and persistent racial wealth gap, a benefit of up to $1,750 is more than just a check in the mail. It is a vital tool for housing stability, a buffer against rising costs, and a small measure of relief against systemic economic pressures. This guide is designed to be your comprehensive playbook for the ANCHOR program. It will break down exactly what the program is, who qualifies, how much money you can expect, and provide a clear, step-by-step process to navigate the application and secure the benefit you and your family are entitled to.

The Weight of Home: Why Property Tax Relief is a Critical Issue for Black New Jersey

To understand the importance of the ANCHOR program, one must first understand the unique and heavy economic burdens placed on Black residents in New Jersey. The state’s high cost of living and steep property taxes are not felt equally. For our community, these financial pressures are amplified by a deep-rooted history of economic inequality that manifests most starkly in housing.

The Context of the Burden

The story of wealth in New Jersey is a tale of two states. The median household wealth for a white family is a staggering $662,500. For a Black household, that figure is less than $20,000. This enormous gap, which has doubled since before the pandemic, is inextricably linked to homeownership, the primary vehicle for wealth creation in America. In New Jersey, the disparity is plain: 76.9% of white households own their homes, compared to just 41.0% of Black households. This gap means that generations of Black families have been locked out of the primary means of building equity and financial security.

For Black families who do achieve homeownership, the hurdles do not disappear. A systemic inequity known as the “assessment gap” creates an invisible, yet costly, tax. Nationwide studies have revealed that local governments disproportionately burden minority residents, with Black homeowners facing a 10-13% higher property tax burden for the same public services compared to their white neighbors. This happens because properties in minority communities are often over-assessed relative to their actual market value. The result is that Black families frequently pay more than their fair share in property taxes, making relief programs like ANCHOR not merely a form of assistance, but a matter of fundamental equity.

The reality of the homeownership gap also means that a large and vital part of our community consists of renters. In cities like Newark, the homeownership rate for Black households is as low as 23%. These families are not immune to the pressures of property taxes; they pay them indirectly through their monthly rent. With more than half of all renter households in New Jersey already cost-burdened—spending over 30% of their income on housing—the financial strain is immense. The inclusion of a renter’s benefit in the ANCHOR program is therefore a critical feature, offering direct relief to a segment of the Black community that is both disproportionately affected by high housing costs and often excluded from property tax-related aid. While programs like ANCHOR provide essential, tangible relief, they act as a temporary patch on a deeply flawed system. A one-time benefit, however significant, does not fix the underlying structural problems of the assessment gap or the racial wealth divide. It offers breathing room but does not constitute a cure.

Unpacking ANCHOR: Your Guide to the Garden State’s Premier Property Tax Relief Program

The ANCHOR program is a direct payment from the state designed to offset the high cost of property taxes for both homeowners and renters. It is a crucial resource that every eligible resident should understand and access.

What is ANCHOR?

The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program was launched in 2022 as an update and expansion of the state’s previous Homestead Benefit program. By including renters and raising income eligibility limits, ANCHOR was designed to provide relief to a much broader population than its predecessor. 

A critical point of clarification for this year’s application is the concept of the “benefit year.” The current application, which is due October 31, 2025, is for the 2024 benefit year. This means your eligibility is based on your residency, income, and age during the 2024 calendar year. The state government made a significant change to align the ANCHOR program’s schedule with other relief programs like the Senior Freeze and the new Stay NJ credit. To do this, they skipped the 2022 and 2023 benefit years. While this may seem confusing, the key takeaway is that payments are still being issued annually; the change is primarily administrative. However, this shift does mean that eligibility is now tied to your circumstances in 2024, not 2022 or 2023. 

Are You Eligible? The Official Checklist (for Tax Year 2024)

To receive an ANCHOR benefit, you must meet all of the requirements for either a homeowner or a renter based on your status on October 1, 2024.

Homeowners must meet ALL of these requirements:

Renters must meet ALL of these requirements:

It is important to note that residents of condominiums, co-ops, and certain continuing care retirement communities are considered homeowners for the purposes of this program. Residents who owned or rented a mobile home located in a mobile home park are considered renters.

The Payout: How Much Money to Expect

The amount of your ANCHOR benefit depends on your income, age, and whether you are a homeowner or renter. The state provides an additional $250 bonus for eligible seniors aged 65 and over. The table below breaks down the specific payment amounts you can expect to receive.

 

Table 1: 2025 ANCHOR Benefit Amounts (Based on 2024 Income & Residency)

Applicant Category 2024 Gross Income Benefit Amount
Homeowners
Age 65 and over $150,000 or less $1,750
$150,001 – $250,000 $1,250
Under Age 65 $150,000 or less $1,500
$150,001 – $250,000 $1,000
Renters
Age 65 and over $150,000 or less $700
Under Age 65 $150,000 or less $450

 

The Step-by-Step Playbook: How to Claim Your ANCHOR Benefit by October 31, 2025

The application process for the ANCHOR program has changed significantly this year. There are now two distinct paths depending on your age and disability status. It is crucial to identify which path applies to you to ensure you receive your benefit.

Path A: For Residents Under 65 (And Not Receiving Social Security Disability)

For most non-senior homeowners and renters, the process is designed to be largely automatic.

  1. The “Automatic” File: The New Jersey Division of Taxation will attempt to automatically file an ANCHOR application on your behalf, using information from your application in a previous year.
  2. Watch Your Mailbox: Starting on August 13, 2025, the state began mailing ANCHOR Benefit Confirmation Letters to residents whose applications were filed automatically.  If you receive this letter and all your information—especially your mailing address and bank account for direct deposit—is correct,
     you do not need to take any further action. Your benefit will be processed automatically.
  3. What If My Information Changed? If you receive a confirmation letter but your banking information is out of date, or if you would prefer to receive a paper check instead of direct deposit, you must take action. You will need to file your own application online by September 15, 2025, to update your information.
  4. What If I Don’t Get a Letter? If you believe you are eligible for the benefit but you do not receive a confirmation letter by late August or early September, you must file an application yourself. You can do this through the state’s online portal, which became available in mid-August 2025. Do not wait; if you don’t receive a letter, the responsibility to file falls on you.

Path B: For Seniors (65+) and Residents Receiving Social Security Disability

This is the most critical distinction this year: there is NO automatic filing for seniors or residents receiving Social Security disability benefits. You must actively file an application to receive any property tax relief. This includes seniors who may only qualify for the ANCHOR benefit and not other programs.

  1. Introducing the PAS-1 Form: The state has created a new, single combined application called Form PAS-1. This form consolidates the applications for three major property tax relief programs:
     ANCHOR, Senior Freeze (Property Tax Reimbursement), and the new Stay NJ credit. You only need to fill out this one application, and the Division of Taxation will determine which of the benefits you are eligible for.
  2. Filing Options: You have two ways to file the PAS-1 application:
    • Online: The fastest and recommended method is to file online at the state’s official portal: propertytaxrelief.nj.gov. Filing online allows you to receive your benefit via direct deposit and provides an immediate confirmation that your application was received.
    • By Mail (Paper): The state began mailing paper application booklets, often called the “Blue Book,” in March 2025. If you did not receive one, you can download and print the form from the Division of Taxation’s website. Be aware that if you file a paper application, you can only receive your benefit as a paper check; direct deposit is not an option for mail-in filers. 

The New Hurdle: ID.me Verification for Online Filing

The state has eliminated the old system of using an ID and PIN to file online. All online applications, for both seniors and non-seniors, now require identity verification through a third-party service called ID.me. While intended to streamline and secure the process, this new requirement may present a significant digital barrier for some of our community’s most vulnerable members, including seniors and those with limited access to technology. The ID.me process requires a computer or smartphone with a camera, a stable internet connection, and specific forms of government-issued photo ID.21 This shift makes it more important than ever to be aware of the paper filing option and the in-person help available.

What You’ll Need to Apply:

Your Support Network: Free Resources to Get the Help You Deserve

Navigating any government program can be daunting. The application process can be confusing, and official channels are often overwhelmed, particularly in a state where social service agencies report being understaffed. Fortunately, you are not alone. A robust network of state and community resources is available to provide free assistance.

Official State of New Jersey Channels

Community Lifelines: Free, Local Help is Available

For many, the most effective support comes from trusted, local organizations that understand the community’s needs. The Volunteer Income Tax Assistance (VITA) program, sponsored by the IRS, offers free tax preparation and assistance from certified volunteers to low- and moderate-income individuals, people with disabilities, and non-English speakers. These organizations can be invaluable in helping you navigate the ANCHOR application.

Table 2: Key Community Partners for Free Tax & Housing Assistance

Organization Service Area Key Services Offered Contact Information
United Way of Greater Newark Newark / Essex County Leads the Newark Asset Building Coalition (NABC), which provides free tax preparation (VITA) and financial education. Website: uwnewark.org
United Community Corporation (UCC) Newark / Essex County As a designated Community Action Agency, UCC offers a wide range of support, including emergency shelter, housing and rental assistance, senior services, and a food pantry. Phone: 973-642-0181 Website: uccnewark.org
Urban League of Essex County Essex County Provides free VITA tax preparation, in addition to workforce development programs and housing counseling. Phone: 973-624-9535 Location: 508 Central Ave, Newark, NJ
New Jersey Citizen Action Statewide Offers free tax preparation by appointment for households with incomes up to $65,000. Phone: 888-829-3711
St. Joseph’s Carpenter Society Camden / South Jersey A HUD-approved housing counseling agency offering homebuyer education, credit repair, rental counseling, and foreclosure prevention. Phone: 856-966-8117 Website: sjcscamden.org
Neighborhood Housing Services of Camden Camden / Tri-County Provides HUD-certified homeownership education, counseling, and financial literacy workshops. Phone: 856-541-0720 Website: nhscamden.org

 

Claiming What’s Ours: A Call to Action

The ANCHOR program represents a significant opportunity. With benefits reaching as high as $1,750 for senior homeowners and $1,500 for other eligible homeowners and renters, this is a financial lifeline that can make a real difference for families across New Jersey.

But this opportunity has a firm expiration date. The deadline to file your application is October 31, 2025. There will be no extensions. The time to act is now.

For our community, applying for this benefit is more than just a bureaucratic task. In a state where systemic inequities have long placed a heavier economic burden on Black families, claiming this relief is an act of empowerment. It is about securing a rightful share of resources designed to make our communities more affordable and sustainable. We urge you to not only apply for yourself but to become a messenger for your community. Share this information with your family, your friends at church, your neighbors, and your elders. Make sure that everyone who is eligible understands the process and has the support they need to apply. This is about our collective financial health and ensuring that these crucial dollars flow back into our households, where they belong.


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