New Jersey
New Jersey Homestead Exemption: ANCHOR, Senior Freeze and Stay NJ
Independently fact-checked against primary sources (last audited October 8, 2026). · 14 primary sources cited on this page. How we verify our legal content
New Jersey does not have a general homestead exemption that lowers the assessed value of every owner-occupied home. Instead, the New Jersey Division of Taxation runs three statewide property tax relief programs: ANCHOR, which pays eligible homeowners $1,500 or $1,000 depending on income, the Senior Freeze, and Stay NJ for homeowners 65 or older. All three are claimed on one application, Form PAS-1, due November 2, 2026 for the 2025 benefit year. Your municipality separately administers property tax deductions and exemptions for seniors, people with disabilities and veterans. For other states, see our guide to homestead exemptions by state.
Information last verified on October 7, 2026. This article has not been reviewed by a licensed lawyer.
Jurisdiction scope: This article covers New Jersey's statewide property tax relief programs for homeowners (ANCHOR, the Senior Freeze and Stay NJ, administered by the Division of Taxation) and the municipally administered senior and disabled persons deduction, veterans deduction and 100% disabled veteran exemption, as described by the Division of Taxation on October 7, 2026. It does not cover ANCHOR amounts for renters, business property, property tax appeals of assessed value, or other states. Creditor and probate rules are covered only briefly, with links to the right guides.
Is there a homestead exemption in New Jersey?
Not in the sense most people mean. New Jersey has no general exemption that reduces the assessed value of every home its owner lives in. What the state offers instead is a set of relief programs, some paid by the state and some applied to your local tax bill.
The Division of Taxation describes the local side this way: "New Jersey offers several property tax deductions, exemptions, and abatements. These programs are managed by your local municipality." The state-paid programs, ANCHOR, the Senior Freeze and Stay NJ, are handled by the Division of Taxation itself.
New Jersey's statutes also still contain an older Homestead Benefit act (N.J.S.A. 54:4-8.57 and following sections). This page did not verify that program's current status, so it is not described here.
New Jersey property tax relief programs at a glance
| Program | Who it is for | Benefit | Where to apply | Deadline |
|---|---|---|---|---|
| ANCHOR (2025 application) | Homeowners who owned and occupied a New Jersey home as their main home on October 1, 2025, with income of $250,000 or less | $1,500 (income $150,000 or less); $1,000 (income $150,001 to $250,000) | Division of Taxation, Form PAS-1 | November 2, 2026 |
| Stay NJ (2025 application) | Homeowners 65 or older (or with a spouse 65 or older) during 2025 who owned and lived in the home all 12 months of 2025, income $200,000 or less | Up to $6,500, $5,000 or $4,000, depending on income | Division of Taxation, Form PAS-1 | November 2, 2026 |
| Senior Freeze (2025 application) | Seniors 65 or older and people receiving Social Security or Railroad Retirement disability benefits who owned and lived in the home since December 31, 2022 or earlier | Reimburses increases in property tax on the main home | Division of Taxation, Form PAS-1 | November 2, 2026 |
| Senior citizens and disabled persons deduction | Homeowners 65 or older or disabled, with income of $10,000 or less (2026 guidelines) | $250 off the tax bill | Local assessor or tax collector, Form PTD, then Form PD5 yearly | Form PD5 on or before March 1 each year |
| Veterans deduction | Honorably discharged veterans with active duty service, and certain surviving spouses or partners | $250 off the tax bill | Local assessor or tax collector, Form V.S.S. | Requirements must be met as of October 1 of the pretax year |
| 100% disabled veteran exemption | Veterans certified by the VA as 100% permanently and totally disabled from a service-connected disability, and certain surviving spouses or partners | Exemption from property tax on the home and its lot (principal residence) | Local assessor, Form D.V.S.S.E. | Ask your assessor |
Eligibility rules, income limits and benefit amounts for the three state programs are, in the Division of Taxation's words, "subject to appropriation by the State Budget." Each figure above for those three programs applies to the 2025 application only.
The Division of Taxation caps the total: all of these benefits combined (ANCHOR, the Senior Freeze, Stay NJ, the senior and disabled persons deduction and the veterans deduction) cannot be more than the property taxes paid on your main home for the same year.
ANCHOR property tax relief for homeowners
ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) "offers property tax relief to New Jersey residents who own or rent property in New Jersey as their main home and meet certain income limits," according to the Division of Taxation. It is a payment to you, by direct deposit or check, not a reduction printed on your tax bill.
The home you claim must have been the home you owned and lived in as your main home on October 1, 2025, and it must have been subject to property taxes.
How much ANCHOR pays homeowners
For the 2025 application, the Division of Taxation's benefit table pays homeowners:
- $1,500 if your 2025 New Jersey gross income was $150,000 or less
- $1,000 if your 2025 New Jersey gross income was $150,001 to $250,000
Above that, homeowners are not eligible. In the Division's words: "Your New Jersey gross income cannot exceed $250,000. If your income on line 29 of your NJ-1040 exceeded $250,000, you are not eligible." Renters receive different amounts, which this page does not cover.
Who has to file, and the deadline
For the 2025 application, the Division of Taxation "filed on behalf of most eligible New Jersey homeowners under 65 and not collecting Social Security Disability or Railroad Retirement Disability benefits based on the information from the prior year's application."
Older and disabled homeowners are treated differently. The Division states: "We will not automatically file the Property Tax Relief Application, Form PAS-1, for taxpayers 65 and over, or those receiving Social Security Disability/Railroad Retirement Disability benefits. You have until November 2, 2026, to file on your own."
You must use the combined form even if you are only after ANCHOR: "You must complete the combined Application for Property Tax Relief, Form PAS-1, to file for your ANCHOR benefit, even if you do not qualify for all three programs."
Watch out: If you turned 65 or began receiving Social Security Disability or Railroad Retirement Disability benefits, do not assume the state filed ANCHOR for you. For the 2025 benefit year, those homeowners must file PAS-1 on their own by November 2, 2026.
Stay NJ for homeowners 65 and older
Stay NJ is a property tax benefit for older homeowners, claimed on the same PAS-1. To be eligible for the 2025 application, the Division of Taxation says you (or your spouse) must have "Been age 65 or older during 2025," "Owned and lived in a home for the full 12 months of 2025," lived in a home subject to property taxes or payments in lieu of taxes, and have "Income that does not exceed $200,000."
The $200,000 cap comes from the state budget. The Division explains that "The Fiscal Year 2027 Appropriations Act, signed on June 30, 2026, provides Stay NJ payments for applicants with incomes of $200,000 or less." That act also "provides for additional 2026 Stay NJ benefits relating to the 2024 Tax Year, plus benefits to be paid in Fiscal Year 2027 for the current 2025 Tax Year application."
The maximum benefit for the 2025 application depends on income:
| Income | Maximum Stay NJ benefit |
|---|---|
| $0 to $100,000 | $6,500 |
| $100,000.01 to $150,000 | $5,000 |
| $150,000.01 to $200,000 | $4,000 |
| Over $200,000 | $0 |
The Division presents these as annualized maximums that assume no change to Stay NJ in the Fiscal Year 2028 budget. It says the 2025 benefit will be paid in February and May 2027.
Stay NJ is for homeowners only. The Division states plainly: "Renter and mobile home owners are not eligible for Stay NJ." The deadline is the same: "The deadline to apply for the 2025 PAS-1 is November 2, 2026."
Senior Freeze (Property Tax Reimbursement)
The Senior Freeze does not freeze your assessment or your bill. It "reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence (main home)," according to the Division of Taxation. You pay your taxes as billed, and the state reimburses the increase over your base year.
Who is eligible
For the 2025 application, you (or your spouse or civil union partner) must have been 65 or older on December 31, 2025, or actually receiving federal Social Security disability or Railroad Retirement disability benefit payments on or before that date. Homeowners must meet a long-ownership test: "You owned and lived in your home since December 31, 2022, or earlier (and you still owned and lived in that home on December 31, 2025)."
The income limits, which count combined income if you were married or in a civil union and lived in the same home, are $168,268 or less for 2024 and $172,475 or less for 2025. The Division also notes that "To qualify, you must meet all the eligibility requirements for each year from the base year through the application year."
A rule changed recently: "Beginning with Tax Year 2024, the age, disability, and three years of residency requirements are applied to the application year, not the base year."
What the Senior Freeze does not cover
Reimbursement applies only to your main home. The Division lists exclusions, including "A vacation home or second home" and "Property that you rent to someone else."
The Senior Freeze is claimed on the same combined application: "Applicants submit a single application to claim benefits from Senior Freeze, ANCHOR, and the new Stay NJ Program." The deadline for the 2025 application is November 2, 2026.
Local deductions and exemptions for seniors, disabled persons and veterans
These programs appear on your local property tax bill and are handled by your municipality, not the Division of Taxation. Municipalities also administer an Active Military Service Property Tax Deferment; ask your tax collector. You can find your local assessor through the Division's list of local tax officials.
Senior citizens and disabled persons deduction ($250)
New Jersey municipalities administer a $250 annual deduction from the property tax bill for qualifying homeowners who are 65 or older or disabled. To be eligible, you must be 65 or older, or disabled, as of December 31 of the pretax year, have been a New Jersey resident for at least one year before October 1, and own and occupy the home as of October 1 of the pretax year.
Your income cannot exceed $10,000 for 2026, under the Division of Taxation's 2026 income guidelines. Those guidelines let you exclude benefits from only one of three categories: Social Security, a federal program paid in lieu of Social Security, or a state or local government retirement program. For tax year 2026, Form PTD is filed with the assessor between October 1 and December 31, 2025, or with the tax collector at any time during 2026. A surviving spouse or civil union partner who was 55 or older at the spouse's death may keep the deduction on the same home.
To claim it, the Division of Taxation says: "File Form PTD and all documentary proofs with your local assessor or tax collector. You will have to file Form PD5 with your tax collector every year, on or before March 1, to maintain the deduction."
Veterans deduction ($250)
Honorably discharged veterans with active duty service may be eligible for a $250 deduction from the tax bill, administered by the municipality. Members of the reserves or National Guard must have been called to active duty. An unremarried surviving spouse, civil union partner or domestic partner may also be eligible. Veterans and eligible surviving spouses or partners file Form V.S.S. and all documentary proofs with the local assessor or tax collector. Active duty for training does not count.
Timing matters: "All requirements must be met as of October 1 of the pretax year." If your claim is denied, the Division explains that you can appeal to the County Board of Taxation by filing Form A-1 on or before April 1 following the denial (January 15 in Burlington, Gloucester and Monmouth counties).
100% disabled veteran exemption
A separate exemption covers certain disabled veterans. An honorably discharged veteran certified by the U.S. Department of Veterans Affairs as 100% permanently and totally disabled from a service-connected disability may be eligible for "an annual property tax exemption on your principal or primary residence (main home)," according to the Division of Taxation.
You must "Provide a U.S. Department of Veterans Affairs (Veterans Administration) certification of active duty service-connected disability stating you are 100% permanently and totally disabled." The Division instructs: "File D.V.S.S.E. and all documentary proofs with your local assessor." An unremarried surviving spouse, civil union partner or domestic partner may also be eligible.
Assessment limits, moving and losing a benefit
This page does not identify any statewide cap on increases in a home's assessed value tied to owner occupancy. For seniors, the state's answer to rising taxes is the Senior Freeze reimbursement described above.
Each program is tied to your main home and to the facts in a specific year. If you sell, move or start renting the home out, contact your local assessor and the Division of Taxation before your next filing. Penalties for a wrongful claim are not covered here because we could not confirm them on an official page.
Creditor and bankruptcy protection for your home
The property tax programs on this page are tax relief. None of them protects your home's equity from creditors, and none of them is a homestead exemption in the bankruptcy sense.
New Jersey has no general homestead exemption that protects a home from creditors. A newer law, the New Jersey Veterans and Military Spouses Asset Protection Act (N.J.S.A. 2A:17-17.1 to 17.6), exempts the primary residence and one secondary residence of a veteran, service member or military spouse from levy, execution, attachment or forced sale for the payment of debts, with no value limit, provided that ownership of both properties is properly recorded with the county clerk.
That protection does not apply to mortgages or voluntary liens, to taxes, assessments or obligations owed to government entities, or to judgments arising from willful misconduct, fraud or criminal activity of the debtor. This summary comes from the codified statute text; we could not confirm the law's chapter number or effective date on the Legislature's website. Ask a New Jersey lawyer how it applies to your debts.
For how a home is treated in a New Jersey bankruptcy case, see our New Jersey bankruptcy guide.
What happens to the home when an owner dies
This page does not cover inheritance or estate rules for a home. For how property passes through a New Jersey estate, see our New Jersey probate guide. To look up the ownership and assessment record for a parcel, see our guide to New Jersey property records.
Related
- Homestead exemptions by state
- New Jersey bankruptcy laws
- New Jersey probate
- New Jersey property records
- New York homestead exemption
- Pennsylvania homestead exemption
Disclaimer: This article is general legal information about New Jersey's ANCHOR, Senior Freeze and Stay NJ programs and the municipally administered property tax deductions and exemptions, as published by the New Jersey Division of Taxation and verified on October 7, 2026. It is not tax or legal advice. For your situation, contact your local tax assessor, the New Jersey Division of Taxation, or a lawyer licensed in New Jersey.
Last updated: October 7, 2026.
Frequently Asked Questions
Does New Jersey have a homestead exemption?
Not a general one that lowers every owner-occupied home's assessed value. New Jersey instead offers ANCHOR, the Senior Freeze and Stay NJ through the Division of Taxation, plus municipally administered deductions and exemptions for seniors, people with disabilities and veterans.
How much is the ANCHOR benefit for homeowners in New Jersey?
For the 2025 application, ANCHOR pays $1,500 to homeowners with 2025 New Jersey gross income of $150,000 or less and $1,000 to those with income of $150,001 to $250,000. Homeowners with income over $250,000 are not eligible.
When is the deadline to apply for ANCHOR, Senior Freeze and Stay NJ?
The deadline for the 2025 Form PAS-1 is November 2, 2026, according to the Division of Taxation. One PAS-1 covers all three programs.
Do I have to file for ANCHOR every year in New Jersey?
There is an application each benefit year. For 2025, the Division of Taxation filed for most eligible homeowners under 65 using prior-year information, but homeowners 65 or older and those receiving Social Security Disability or Railroad Retirement Disability benefits must file PAS-1 themselves.
Who is eligible for Stay NJ?
Homeowners who (or whose spouse) were 65 or older during 2025, who owned and lived in the home for the full 12 months of 2025, and whose income does not exceed $200,000, the cap set by the Fiscal Year 2027 Appropriations Act. Renters and mobile home owners are not eligible for Stay NJ.
What is the Senior Freeze in New Jersey?
It reimburses eligible senior citizens and disabled persons for increases in property tax or mobile home park site fees on their main home. Homeowners must have owned and lived in the home since December 31, 2022 or earlier and still have done so on December 31, 2025, and the 2025 application is due November 2, 2026.
How do I keep the $250 senior or disabled person deduction in New Jersey?
After filing Form PTD with your local assessor or tax collector, you must file Form PD5 with your tax collector every year on or before March 1 to maintain the deduction, according to the Division of Taxation.
Are 100% disabled veterans exempt from property tax in New Jersey?
An honorably discharged veteran with a VA certification of a 100% permanent and total service-connected disability may be eligible for an annual exemption on the principal residence, filed on Form D.V.S.S.E. with the local assessor. An unremarried surviving spouse, civil union or domestic partner may also be eligible.
Does the New Jersey homestead exemption protect my house from creditors?
The tax relief programs on this page lower or reimburse property tax; they do not protect home equity from creditors, and New Jersey has no general homestead exemption for that purpose. Under N.J.S.A. 2A:17-17.1 to 17.6, the primary residence and one secondary residence of a veteran, service member or military spouse are exempt from levy, execution, attachment or forced sale for debts, with no value limit, if ownership is properly recorded with the county clerk. It does not cover mortgages or voluntary liens, government taxes and assessments, or judgments for willful misconduct, fraud or criminal activity. For bankruptcy, see our New Jersey bankruptcy guide.
Updates
Independently fact-checked against the cited primary sources
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
New Jersey Statutes (Unannotated)
§ 54:4-3.30Disabled veteran's exemption.In force
1. a. The dwelling house and the lot or curtilage whereon the same is erected, of any citizen and resident of this State, now or hereafter honorably discharged or released under honorable circumstances, from active service in any branch of the Armed Forces of the United States, who has been or shall be declared by the United States Department of Veterans' Affairs or its successor to have a service-connected disability from paraplegia, sarcoidosis, osteochondritis resulting in permanent loss of the use of both legs, or permanent paralysis of both legs and lower parts of the body, or from hemiplegia and has permanent paralysis of one leg and one arm or either side of the body, resulting from injury to the spinal cord, skeletal structure, or brain or from disease of the spinal cord not resulting from any form of syphilis; or from total blindness; or from amputation of both arms or both legs, or both hands or both feet, or the combination of a hand and a foot; or from other service-connected disability declared by the United States Veterans Administration or its successor to be a total or 100 percent permanent disability, and not so evaluated solely because of hospitalization or…
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at lis.njleg.state.nj.us
§ 54:4-8.11Veterans' tax deduction.In force
2. Every person a citizen and resident of this State now or hereafter honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States and a surviving spouse as defined herein, during her widowhood or his widowerhood, and while a resident of this State, shall be entitled, annually, on proper claim being made therefor, to a deduction from the amount of any tax bill for taxes on real or personal property or both in the sum of $100 in tax year 2000, $150 in tax year 2001, $200 in tax year 2002, and $250 in each subsequent tax year, or if the amount of any such tax shall be less than $100 in tax year 2000, $150 in tax year 2001, $200 in tax year 2002, and $250 in each subsequent tax year, to a cancellation thereof. A person otherwise eligible for the veterans' deduction who is a resident of a continuing care retirement community shall receive the amount of the deduction to the extent of the share of the taxes assessed against the real property of the continuing care retirement community that is attributable to the unit that the resident occupies.
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at lis.njleg.state.nj.us
§ 54:4-8.75bDefinitions.In force
2. As used in this act: "ANCHOR" means the Affordable New Jersey Communities for Homeowners and Renters Property Tax Relief Program. "Condominium" means the form of real property ownership provided for under the "Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.). "Cooperative" means a housing corporation or association which entitles the holder of a share or membership interest thereof to possess and occupy for dwelling purposes a house, apartment or other unit of housing owned or leased by the corporation or association, or to lease or purchase a unit of housing constructed or to be constructed by the corporation or association. "Director" means the Director of the Division of Taxation in the Department of the Treasury. "Dwelling house" means any residential property assessed as real property which consists of not more than four units, of which not more than one may be used for commercial purposes, but shall not include a unit in a condominium, cooperative, horizontal property regime or mutual housing corporation.
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at lis.njleg.state.nj.us
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Sources and References
- New Jersey Division of Taxation: Property Tax Deductions, Exemptions and Abatements(nj.gov).gov
- New Jersey Division of Taxation: ANCHOR Program(nj.gov).gov
- New Jersey Division of Taxation: How ANCHOR Benefits Are Calculated(nj.gov).gov
- New Jersey Division of Taxation: ANCHOR Eligibility(nj.gov).gov
- New Jersey Division of Taxation: Stay NJ Property Tax Credit Program(nj.gov).gov
- New Jersey Division of Taxation: Senior Freeze (Property Tax Reimbursement)(nj.gov).gov
- New Jersey Division of Taxation: Senior Freeze Eligibility Requirements(nj.gov).gov
- New Jersey Division of Taxation: List of Local Tax Officials(nj.gov).gov
- New Jersey Division of Taxation: Senior Citizens and Disabled Persons Property Tax Deduction(nj.gov).gov
- New Jersey Division of Taxation: Veterans Property Tax Deduction(nj.gov).gov
- New Jersey Division of Taxation: 100% Disabled Veterans Property Tax Exemption(nj.gov).gov
- New Jersey Division of Taxation: Revised 2026 Income Guidelines for the Real Property Tax Deduction for Senior Citizens, Disabled Persons and Surviving Spouses(nj.gov).gov
- New Jersey Statutes: N.J.S.A. 2A:17-17.4, Exemptions for primary, secondary residences of veterans, service members, military spouses(lis.njleg.state.nj.us).gov
- New Jersey Statutes: N.J.S.A. 54:4-3.30, Disabled veteran's exemption(lis.njleg.state.nj.us).gov