Stay NJ Property Tax Relief: What New Jersey Seniors and Pre-Retirees Need to Know

A New Layer of Property Tax Relief for NJ Seniors

New Jersey has the highest property taxes in the nation, and for retirees on a fixed income, those tax bills are often the single largest recurring expense. The Stay NJ program, which began making payments in 2026, adds a significant new layer of relief for homeowners aged 65 and older. Eligible seniors can receive a reimbursement of up to 50% of their property tax bill, with a maximum annual benefit of $6,500.

Stay NJ is not a replacement for existing programs. It works alongside the Senior Freeze and ANCHOR programs, and all three are now applied for through a single combined application. For many South Jersey retirees, the total benefit across these programs can meaningfully reduce the out-of-pocket cost of homeownership in retirement.

How Stay NJ Works

Stay NJ reimburses eligible homeowners for a portion of their property taxes based on their income and their property tax bill. The benefit is calculated after accounting for any Senior Freeze and ANCHOR benefits you receive, so it layers on top of those programs rather than replacing them.

Benefit Tiers by Income

Source: NJ Division of Taxation. The income threshold of $200,000 was set by the FY 2027 Appropriations Act.

Payment Schedule

Unlike the Senior Freeze and ANCHOR, which are paid as lump-sum checks, Stay NJ benefits are distributed in quarterly installments. For the first year, the NJ Division of Taxation has outlined the following timeline:

• Senior Freeze benefits: Expected July 2026
• ANCHOR benefits: Expected September 2026
• Stay NJ first installment: Expected February 2027
• Subsequent Stay NJ payments: Quarterly thereafter

Eligibility Requirements

To qualify for Stay NJ, you must meet all of the following:

• Age: You must be 65 or older. Unlike the Senior Freeze, which also covers certain disabled individuals, Stay NJ is age-based only. Social Security disability status does not qualify you.
• Homeownership: You must own and occupy the home as your principal residence for the entire year (all 12 months of 2025 for the current application cycle).
• New Jersey residency: You must be a New Jersey resident for the full year.
• Income: Your annual income must be $200,000 or less. Income includes wages, Social Security benefits, pensions, investment income, and other sources.

Who does not qualify: Mobile homeowners are not eligible for Stay NJ (though they may still qualify for ANCHOR and Senior Freeze). Renters do not qualify. Homeowners under 65, regardless of disability status, are not eligible.

How to Apply: The Combined PAS-1 Application

One of the most important changes for 2026 is that Stay NJ, Senior Freeze, and ANCHOR are now applied for through a single combined application called the PAS-1. You no longer need to file separate applications for each program. If you qualify for multiple programs, the single application automatically calculates your benefits across all three.

Key application details:

• Deadline: November 2, 2026
• How to file: Online through the NJ Division of Taxation website, or by mail using a paper PAS-1 form
• What you need: Proof of age, proof of homeownership, property tax bill(s) for 2025, income documentation for 2025, and Social Security number(s)

If you have filed for the Senior Freeze or ANCHOR in prior years, the process will feel familiar, but the PAS-1 replaces those earlier forms. Filing early is recommended, as processing times can be lengthy during peak season.

How Stay NJ Compares to Senior Freeze and ANCHOR

The three programs are complementary. A homeowner aged 65 or older with income of $100,000 or less could potentially receive the Senior Freeze (which locks in property taxes at a base year level), an ANCHOR benefit (up to $1,750), and Stay NJ (up to $6,500). The Stay NJ calculation accounts for other benefits received, so the total is coordinated rather than simply stacked.

How Stay NJ Fits Into Your Retirement Plan

Property tax relief is not just a tax issue for retirees. It directly affects how much income you need in retirement and whether staying in your New Jersey home remains financially viable. The team at GPS Wealth Management considers property tax programs within the broader retirement picture:

Income Management and Eligibility

Stay NJ benefits decrease as income rises above $100,000, and eligibility ends entirely above $200,000. This creates an incentive to manage retirement income carefully. Strategies like Roth conversions done before age 65, tax-efficient withdrawal sequencing, and thoughtful RMD planning can all help keep income below key thresholds. Roth distributions, for example, do not count as income for most purposes.

The Stay-or-Go Decision

One of the most common questions the team hears from pre-retirees is whether to stay in New Jersey or relocate to a lower-tax state. Stay NJ changes that calculation for homeowners 65 and older. If you are on the fence, the potential savings from Stay NJ plus Senior Freeze plus ANCHOR should be factored into the comparison. The team’s guide to downsizing in retirement for NJ homeowners covers the broader financial considerations of moving versus staying.

Retirement Income Projections

When the team at GPS Wealth Management builds retirement income projections, property taxes are one of the largest line items. Incorporating Stay NJ, Senior Freeze, and ANCHOR benefits into those projections gives a more accurate picture of the income you actually need. This connects to the team’s guide on how much you need to retire in New Jersey. Reducing your effective property tax burden by several thousand dollars per year can meaningfully extend how long your savings last.

Estate Planning Considerations

If Stay NJ makes it more financially feasible to remain in your current home, that has implications for your estate plan. The home may remain your largest single asset, and decisions about whether to leave it to heirs, downsize later, or use it to fund long-term care all come into play. See the team’s guides to estate planning basics and long-term care planning in NJ for more on these interconnected decisions.

Your Action Steps

• Check your eligibility: Confirm you are 65 or older, own and occupy your NJ home as a primary residence, and have income at or below $200,000.
• Gather your documents: You will need your 2025 property tax bills, 2025 income documentation, proof of age, and Social Security number(s).
• File the PAS-1 application: Apply online or by mail before the November 2, 2026 deadline. One application covers Stay NJ, Senior Freeze, and ANCHOR.
• Review your income strategy: If your income is near $100,000 or $150,000, consider whether adjusting the timing of distributions, conversions, or asset sales could keep you in a higher benefit tier.
• Factor benefits into your retirement plan: Update your retirement income projections to reflect the combined property tax relief you may receive.

Talk to the Team at GPS Wealth Management

Property taxes are one of the most significant ongoing costs for New Jersey retirees, and the combination of Stay NJ, Senior Freeze, and ANCHOR has the potential to substantially reduce that burden. The team at GPS Wealth Management works with pre-retirees and retirees across South Jersey to coordinate property tax relief with retirement income planning, tax planning, and investment management.

To discuss how these programs fit into your retirement plan, call 856-552-0746 or visit the contact page.