Stimulus Update: New Jersey Homeowners Could Earn Up to $1,500 in Property-Tax Relief — Who Qualifies?

Beautiful woman at home checking the mail stock photo
andresr / iStock.com

New Jerseyans get the short end of the stick as far as property taxes are concerned. The average effective tax rate in New Jersey is 2.42%, compared to the national average of 1.07%, according to SmartAsset.

See: 15 Worst States To Live on Just a Social Security Check
Find: 9 Bills You Should Never Put on Autopay

Last week, N.J. Governor Phil Murphy announced a plan that would open the state’s coffers to provide more than $2 billion in rebates to approximately 2 million New Jersey households, offering up to $1,500 to families who pay property tax. For the first time ever, renters would also receive relief.

The expansion of the state’s ANCHOR Property Relief Program would help reduce the average household’s property tax bill to its lowest level in more than a decade, from an average near $9,300 to an expected $7,800, 4 NBC New York reported. Homeowners who earn as much as $250,000 would be eligible to receive some cash.

POLL: Do You Think You Will Be Able To Retire at Age 65?

Make Your Money Work

If the plan is passed as expected, an expected 870,000 New Jersey households that make up to $150,000 would get $1,500 in direct relief. Families who make between $150,000 and $250,000 would receive $1,000 under the plan. Renters who make up to $150,000 would receive $450 in rent assistance.

Murphy’s original plan had the state loosening up $900 million from the state’s coffers to help approximately 1.8 New Jersey residents with $700 rebates for homeowners and $250 for renters, Accounting Today reported. However, with the July 1 state budget looming and a $10.7 billion tax collection surplus at its disposal, there was an opportunity to expand the original program to help more New Jersey residents.

“State revenues have put us in a very strong fiscal position,” Murphy said at the program announcement. “Today we are providing truly historic tax relief.”

State Senate Republicans — who have their own initiative to give 4 million households $1,000 tax rebates, according to Accounting Today — are against the plan. “It doesn’t deliver meaningful changes in fiscal policy and will be the first program to get cut when money is tight,” said Republican Assembly Leader John DiMaio, as reported by 4 NBC New York.

Make Your Money Work

More From GOBankingRates

About the Author

David Nadelle is a freelance editor and writer based in Ottawa, Canada. After working in the energy industry for 18 years, he decided to change careers in 2016 and concentrate full-time on all aspects of writing. He recently completed a technical communication diploma and holds previous university degrees in journalism, sociology and criminology. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry.

Best Bank Accounts of June 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.