The Stay NJ Program – part II – video
3 Changes to the Stay NJ Program
The just proposed Fiscal Year 2027 budget presented by Governor Sherrill, contains several significant adjustments to the state’s property tax relief landscape, including changes to the ANCHOR Property Tax Relief Program and the Stay NJ program, which is the newest of the three programs.
Originally launched as a $1.2 billion property tax relief program, Stay NJ has already begun issuing quarterly checks to qualifying homeowners.
Under the proposed budget, however, the program is slated for major revisions. The total funding level would drop to roughly $700 million, the income eligibility cap would fall from $500,000 to $250,000, and the maximum benefit would decline from $6,500 to $4,000.
The proposal also restructures how senior property tax relief is distributed. The $250 ANCHOR bonus for senior homeowners would be eliminated, but described as “folded into” the Stay NJ framework. Renters over age 65 would still receive the additional payment.
Another important detail which has NOT changed: the income calculation used to determine Stay NJ eligibility includes several sources not always counted for state income tax purposes. These include Social Security benefits, pensions, annuity income, dividends, interest, retirement account withdrawals, and even Roth IRA distributions. Because the program has a strict “cliff” income limit, exceeding the threshold — even by one dollar — can disqualify applicants from the benefit.
Key Takeaways:
- The Stay NJ program funding is proposed to drop from $1.2B to $700M.
- The income eligibility cap may fall from $500,000 to $250,000.
- The maximum benefit would decline from $6,500 to $4,000.
- The $250 ANCHOR senior homeowner bonus may be absorbed into the Stay NJ program.
- Income calculations include Social Security, pension and annuity income, and even Roth IRA withdrawals.
The Stay NJ Program – part II – Links
Catch all our Mullooly Asset videos here
Subscribe to the Mullooly Asset YouTube Channel
Watch this episode (“The Stay NJ Program – part II”) on our YouTube Channel
The Stay NJ Program – part II – Transcript
We have an update to the Stay NJ program.
We’re recording this on March 10th, 2026, just a few hours after Governor Sherrill gave her first budget for fiscal 2027.
We wanted to quickly make a video just to bring you some of the highlights — some of the changes that are coming to the Stay NJ program.
As a reminder, we covered the basics of the Stay NJ program in this video here, and we’ll link to it below as well. If you haven’t seen it, you really should go watch it.
There’s three programs that offer some kind of property tax relief for New Jersey residents.
The first one is the Anchor program.
The second one is Senior Freeze.
The third one, the newest one, is the Stay NJ program.
It’s the newest program, but they’re making the biggest changes to it.
So “Stay NJ” was proposed in 2024.
But homeowners who qualified for the Stay NJ Property Tax relief didn’t start getting their first check until, uh, about three weeks ago!! (in February of 2026)
Their next one is coming in May.
It’s a quarterly check.
But now the program is already changing for fiscal 2027.
Just to give you an idea of the size of the change, when Stay NJ was rolled out, this was a $1.2 billion property tax relief program.
This is now being cut back to $700 million. So the program itself in size is being cut almost in half.
The Anchor program had a $250 bonus for seniors.
Anchor program is not just for seniors, but if you’re a senior and you qualified for the Anchor program, you got an extra $250.
That is also changing.
Now what they’re doing is if you are a senior — and you are a renter — in New Jersey, you will still qualify for that $250 bonus.
However, if you are a homeowner in the state of New Jersey over 65, that bonus is now going away.
It’s now going to be included, in the Stay NJ program.
Stay NJ — to qualify for the Stay NJ program, the original plan had a maximum income cap of $500,000.
That seems like a lot.
That cap is now being lowered from $500,000 to $250,000.
That’s a big deal.
They’re lowering the threshold to the same level now as the Anchor program, and there’s no phase out.
It’s… I mean… there is no phase out at all.
It’s a cliff. If you go over the amount by a dollar, you’re not going to get the bonus… the benefit to it.
The maximum benefit for the Stay NJ program was set at $6,500.
Under the new proposed budget, the $6,500 threshold is now being lowered to $4,000. So that’s a drop as well.
Now this $250,000 threshold may sound like a lot, especially for retirees.
But the calculation for “what’s included” in the income, that counts for Stay NJ is a little different than what you would, um, calculate for your New Jersey State Income taxes.
Things that may not show up on your income taxes… are going to be included when they calculate the gap… the cap for Stay NJ.
Things like social security benefits are going to be included.
Pension benefits, annuity income, dividends, interest….. that may or may not be included, in your income taxes, but will be included for your Stay NJ program.
Any distributions from retirement plans…… so your 401k distributions, your IRA distributions.
Also, of course, your required minimum distributions as well.
But here’s one that, threw me for a loop last time….. on the other video…… and is throwing me again for a loop here: distributions from Roth IRAs…. are going to be included when they’re calculating the cap for whether you qualify for the Stay NJ program, or not.
A lot of changes.
Everything is still brand new and people are just getting a look at it for the first time.
But we wanted to quickly get some of these changes to you as soon as possible.
Thanks for watching the Stay NJ program, part II
