New Jersey has a reputation for high costs, but honestly, the state is also quietly aggressive about handing money back to people who know where to look. Most of us just think of the standard deductions and call it a day. That’s a mistake. Between the massive overhaul of property tax relief and the beefed-up credits for families, the landscape for a new jersey tax credit looks completely different in 2026 than it did even two years ago.
If you’re living here, you’ve probably heard of ANCHOR. Maybe you've even gotten a check. But there’s a new player called "Stay NJ" that’s hitting the scene right now, and it’s basically designed to keep seniors from fleeing to Florida. It's a lot to keep track of. Let’s break down what’s actually happening with your money.
The Big Shakeup: Stay NJ and the PAS-1 Form
For a long time, if you wanted tax relief in Jersey, you had to jump through three different hoops for three different programs. It was a mess. Now, the state has moved to something called the PAS-1 application. It’s a single form. You fill it out, and the Division of Taxation does the math to see if you qualify for ANCHOR, the Senior Freeze, or the brand-new Stay NJ credit.
Stay NJ is the headline-grabber. Starting in 2026, it offers a property tax credit of up to 50% for residents aged 65 and older. There is a cap, though—it’s currently $6,500. To get it, you need to make less than $500,000 a year. That’s a pretty high ceiling, which means a lot of people who didn't think they were "low income" are suddenly eligible for a massive break.
The way they pay it out is kind of unique. Unlike ANCHOR, which usually comes as a lump sum, Stay NJ is designed to be a direct credit on your property tax bill, split into quarterly chunks in February, May, August, and November.
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Why the "Freeze" Still Matters
Even with the new shiny credits, the Senior Freeze (Property Tax Reimbursement) is still a bedrock. It literally "freezes" your property tax at the amount you paid in your "base year." If your town hikes taxes (and let’s be real, they will), the state cuts you a check for the difference. For 2026, the income limit for this one has climbed to over $168,000.
The NJ Child Tax Credit: More Than Just a Federal Extra
New Jersey didn't just stop at property taxes. The state-level Child Tax Credit is a huge deal for families making under $80,000. It’s fully refundable. That means even if you don't owe a dime in state income tax, New Jersey will still send you the money.
- The $1,000 Sweet Spot: If your household taxable income is $30,000 or less, you get $1,000 per child under age 6.
- The Phase-Out: As you make more, the credit drops. If you’re in the $60,000 to $80,000 range, it’s $200 per kid.
- The Age Limit: It’s strictly for kids 5 and younger. Once they hit 6, this specific credit disappears, though you might still qualify for other breaks.
It's sort of a "hidden" benefit because many people assume the federal CTC is the only one they get. Make sure you're looking at Form NJ-1040 closely. You don't need to attach a mountain of receipts, but they might ask for proof of residency later, so keep those utility bills handy.
Working Class Boost: The NJEITC
The New Jersey Earned Income Tax Credit (NJEITC) is essentially a 40% match of whatever you get from the federal government's EITC. If the IRS gives you $3,000, New Jersey kicks in another $1,200.
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One thing people get wrong: you must file a New Jersey return to get this, even if your income is so low that you aren't legally required to file. If you don't file, you don't get the check. It’s that simple. Also, the state recently expanded this to include workers as young as 18 without dependents, which is a big shift from the old rules that required you to be 21.
Green Energy and Business Incentives
If you're a homeowner looking to swap out an old furnace, 2026 is a good year. The Whole Home Energy Efficiency Program is offering up to $7,500 in cash-back incentives. It’s not a tax credit in the traditional "file it in April" sense, but it’s a direct financial incentive managed through the state’s utilities.
On the business side, the Garden State Film and Digital Media Jobs Act is still massive. Companies are getting 30% to 35% tax credits for filming in Jersey. This is why you see so many production trucks in Jersey City and Newark lately. If you’re running a tech startup, look into the Technology Business Tax Certificate Transfer Program. It allows you to sell your unused R&D tax credits for cash. Honestly, it’s one of the best "secret" ways for pre-revenue companies to get funding without giving up equity.
Common Mistakes to Avoid
- Missing the "October Surprise": Most property tax relief applications are due by October 31. If you miss it, you're out of luck for the whole year.
- Ignoring the PAS-1: Some people still try to find the old ANCHOR-H or ANCHOR-T forms. Those are gone. Use the consolidated application.
- Filing Status Errors: If you're married filing separately, you might be disqualified from the Child Tax Credit entirely. Check your status before you hit submit.
- Residency Requirements: For many of these, you need to have lived in the state for the full year. If you moved in July, your credit will likely be prorated.
What to Do Right Now
Check your 2025 income totals against the new 2026 limits. If you’re a senior making under $500k, make sure you've received your PAS-1 form in the mail (they usually start shipping these in March). If you haven't seen it by late spring, go to the NJ Division of Taxation website and look up your status.
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Gather your Social Security numbers and property tax records now. For the Child Tax Credit and NJEITC, make sure your federal return is filed early so the state has a benchmark to work from. Most delays happen because the state is waiting for the IRS to verify your data.
The money is there. New Jersey is expensive, but these programs are designed to take the edge off if you're willing to do a little bit of paperwork.