Largest tax relief package in state history offers unprecedented savings for senior residents.
New Jersey seniors can expect significant financial relief in the new budget, as Governor Phil Murphy signed the state’s largest budget in history—$58.8 billion—with unprecedented property tax assistance specifically designed for older residents.
The centerpiece for seniors is the expansion of three major tax relief programs that can now be accessed through a single, simplified application. This streamlined process eliminates the confusion and paperwork that previously made it difficult for many eligible seniors to claim their benefits.
Three Programs, One Application
The ANCHOR program continues to provide up to $1,500 for eligible homeowners and $450 for renters, with an additional $250 bonus for seniors in both categories. Last year alone, ANCHOR delivered over $2.2 billion in relief to nearly two million residents.
The Senior Freeze program remains available for income-eligible seniors, disabled homeowners, and renters, reimbursing them for property tax increases with a $239 million allocation benefiting more than 235,000 taxpayers.
The most significant new benefit is Stay NJ, launching in January 2026. This groundbreaking program will reduce property tax bills by up to 50% for seniors earning less than $500,000 annually, with savings capped at $6,500. The program has $600 million allocated and is expected to help more than 432,000 senior homeowners.
For the first time, seniors can apply for all three programs using the same Form PAS-1, making the process much simpler and reducing the chance of missing out on available benefits.
Healthcare and Prescription Support
The budget maintains strong support for senior healthcare needs, including $55.4 million for the Pharmaceutical Assistance to the Aged and Disabled (PAAD) and Senior Gold programs, which help more than 149,000 seniors and residents with disabilities afford prescription medications.
Additionally, $165 million continues the Cover All Kids program, ensuring comprehensive healthcare coverage remains available for families with aging parents who may be caring for grandchildren.
Funding the Relief
To pay for these expanded benefits, the state approved targeted tax increases on online gambling, sports betting, cigarettes, and high-value real estate transactions over $2 million. The budget maintains a substantial $6.7 billion surplus, providing a financial cushion for future challenges.
A Chaotic, Last Minute Procress
The budget process this year was anything but smooth. Governor Murphy did not sign the final budget bill until 11:42pm on Monday, with just 18 minutes to spare a New Jersey government shutdown. Lawmakers scrambled to reach consensus as the June 30 deadline loomed, with both the Senate and Assembly holding marathon sessions that stretched well into the night. Key legislators, including budget committee chairs, were sometimes absent due to the shifting schedule, and the final bill was still being crafted as late as Friday evening, just days before the required passage. This frenzied pace is a hallmark of New Jersey’s budget tradition, but this year’s process was further complicated by concerns over federal funding cuts and the need for last-minute spending add-ons.
Looking Ahead
While the property tax relief represents historic progress, seniors should be aware that future funding for the Stay NJ program will depend on subsequent governors and legislatures. The current budget provides a strong foundation, but sustained political support will be necessary to maintain these benefit levels long-term.
The budget also addresses potential concerns about federal Medicaid cuts, which could impact thousands of New Jersey seniors. The large state surplus provides some protection against these potential reductions. Jersey Senior Weekly will be providing full coverage of the federal “One Big Beautiful Act”.
For seniors ready to take advantage of these property tax relief programs, applications will be available through the state’s Division of Taxation website, with the simplified Form PAS-1 making it easier than ever to access all available benefits in one streamlined process.
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