NJ tax relief totaling $3.5 billion expected in Phil Murphy's 2025 budget address
Gov. Phil Murphy is expected to provide more than $3.5 billion in tax relief in the coming fiscal year that starts July 1, supporting his message that he is aiming to make New Jersey more affordable for families.
Programs such as ANCHOR, Senior Freeze and the child tax credit will remain, while RetireReady NJ — first formed as part of the Secure Choice Savings Program Act in 2019 — will be funded for the first time, according to administration officials who said the governor is expected to highlight these programs in his budget address this afternoon. The governor’s proposed budget will also include a second year of funding for the StayNJ program, which was introduced last year and does not go into effect until at least 2026.
"Our proposed budget will once again lower costs for middle- and working-class families — as well as seniors — by providing another round of historic tax relief," Murphy is expected to say Tuesday, according to prepared remarks for his budget address. "So, at a time when families are grappling with higher prices at the checkout counter… we are putting more money back into their pockets than ever before."
ANCHOR
ANCHOR, entering its third year, is expected to see a payout total increase by more than $165 million in both the current fiscal year and 2025 because of the popularity of the program with nearly 1.3 million homeowners receiving up to $1,750 and more than 700,000 renters getting up to $700.
StayNJ and Senior Freeze
Another $200 million is being earmarked for the StayNJ property tax relief program geared toward seniors. That is in addition to the $100 million set aside last year for the program. Meanwhile the aptly named Senior Freeze recently had applications mailed with a return deadline of Oct. 31.
There was an increase in eligibility implemented in last year’s budget so now about 58,000 more households will be eligible for the program as the income limit increased by about $50,000 for fiscal year 2025. The law also factors inflation into the mix so that the eligibility limit will increase even further to just over $163,000 for fiscal year 2026.
Other NJ tax credits will continue
A handful of income tax credits are slated to continue as well including the state’s earned income tax credit and the expanded Child and Dependent Care Credit and Child Tax Credit programs.
What you need to know: New Jersey Senior Freeze Program 2024
RetireReady NJ
The newest investment in affordability, according to administration officials, will be a state-sponsored retirement savings program for private sector employees called RetireReady NJ.
Administration officials said that participation in the program is mandatory for most businesses with at least 25 employees and is designed to close the retirement savings gap that exists between employees of large and small businesses.
Funding now is expected to cover the costs of getting the program up and running. RetireReady NJ will run by an executive director and a board who are already looking for New Jersey employers who would like to participate in the pilot launch.
Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com
This article originally appeared on NorthJersey.com: Phil Murphy 2025 budget speech will include 3.5B in NJ tax relief
