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Division of Taxation

How ANCHOR Benefits Are Calculated and Paid

Calculation

The benefit is calculated using your 2019 New Jersey Gross Income and cannot exceed the amount of property taxes paid. If your 2019 Gross Income exceeded $250,000 you are not eligible.

2019 Gross Income (NJ-1040 Line 29) of $150,000 or less = $1,500.

2019 Gross Income (NJ-1040 Line 29) $150,001 to $250,000 = $1,000.

Multi-Owner and Multi-Unit Properties

Multi-Owner Properties. If you owned your main home with someone who was not your spouse or civil union partner, we calculate the benefit as indicated above. However, it cannot exceed the amount of property tax apportioned to your share of ownership. You will receive the lessor of the benefit amount or proportionate share of property tax.

Example 1: Two unmarried owners (Homeowner A and Homeowner B) were assessed and paid a total of $2,500 in 2019 total property tax. Both owners occupied the property on October 1, 2019.

Each owner is considered a 50% owner of the property and each owner’s share of property tax is 50% of the total tax amount: $1,250 ($2,500 x .50).

Homeowner A’s income is $160,000 which entitles them to a benefit amount of $1,000. The lessor of the benefit amount or share of property tax is $1,000. Therefore, Homeowner A is entitled to receive $1,000.

Homeowner B’s income is $80,000 which entitles them to a benefit amount of $1,500. The lessor of the benefit amount or share of property tax is $1,250. Homeowner B is entitled to receive $1,250 if they occupied the property on October 1, 2019.

Example 2: Two unmarried owners were assessed and paid $8,000 in 2019 total property tax. Both owners occupied the property on October 1, 2019.

Each owner is considered a 50% owner of the property and each owner’s share of property tax is 50% of the total tax amount or $4,000 ($8,000 x .50).

Each owner has income below $150,000 which entitles each to a benefit amount of $1,500. Since their share of property tax is not less than the benefit amount, each owner will receive a benefit of $1,500.

Multi-Unit Properties. The calculation for multi-unit properties is similar to the multi-owner examples above. If you own a multi-unit or multi-family home and only occupy a portion of the property, your proportional share of property taxes is based on the percentage of the property you occupied as your main home. For example, if you own a two-family home and occupy one half of the property, your proportional share of property taxes is 50% of the total property taxes. You may still receive an ANCHOR benefit based on your income, but the benefit cannot exceed your proportional share of property taxes.

Payment

During the filing process you will select if you want your benefit paid as a direct deposit or by paper check. 2019 ANCHOR benefits are expected to be paid in the late Spring of 2023.

Direct deposit issues:

If you made an error on your application when entering your direct deposit information, or prefer to receive your payment by paper check, we may be able to correct this for you. Complete the ANCHOR Program Direct Deposit Correction form and either check the "Request a Paper Check" box or provide the corrected banking information. You must include a copy of your government issued ID for us to complete your request.

Beginning April 1, 2023 we will only be able to cancel direct deposit requests and issue paper checks.

Property Tax Credit

New Jersey Homeowners who are not required to file a New Jersey Gross Income Tax return (NJ-1040) are eligible for a Property Tax Credit of up to $50. If you were a resident homeowner on October 1, 2019, and not required to file an NJ-1040, your Property Tax Credit will be included in your ANCHOR benefit payment.

Estates

If you filed on behalf of an estate, we will issue the approved benefit in the name of the estate. Due to the timing of when a check may be issued, you should speak to your bank and/or seek guidance from your attorney prior to closing the estate bank account.

Cap on Property Tax Relief Benefits

The total amount of all property tax relief benefits you receive cannot be more than the property taxes paid on your main home for the same year (ANCHOR benefit, Senior Freeze, Property Tax Deduction for senior citizens/disabled persons, and Property Tax Deduction for veterans).

Set-Off Program

Under New Jersey law, if you owe money to New Jersey, any of its agencies, or the Internal Revenue Service, we will deduct it from your ANCHOR benefit. If we apply your benefit to any of these debts, we will notify you by mail.


Last Updated: Friday, 01/27/23