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More than 2million Americans to get payments up to $1,500 under revised $2billion plan – see if you qualify

MORE than 2million residents are set to receive some relief from sky-high property taxes.

New Jersey Governor Phil Murphy has announced an expansion to the ANCHOR Property Tax Relief program, which will now provide more than $2billion in tax relief for both homeowners and renters.

Both homeowners and renters will be eligible for money under the programCredit: Getty Images - Getty

Previously, the funding under the initiative provided a total of $900million or gave homeowners and renters up to $700 in cash relief.

The revised ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) Property Tax Relief Program will go into effect for the fiscal year 2023 (FY2023) - which will be July 1.

The program will replace the Homestead Rebate Program, which serves 470,000 New Jersey homeowners every year - and excludes renters.

The current program provides an average benefit of $626.

New Jersey has the highest property tax rates in the US, followed by Illinois and New Hampshire, according to a WalletHub report.

Property taxes vary by city in New Jersey but on average runs about 2.4%, compared to the national average of 1.07%.

To give some perspective, the rates mean a homeowner would pay about $12,000 on a $500,000 home.

According to Governor Murphy's office, the average tax bill in 2021 was roughly $9,300 for New Jerseyans.

“Today we take a step forward on this administration’s promise to make New Jersey a stronger, fairer, more affordable state for our middle-class and working families," Gov Murphy said in a statement.

Eligibility and how much you will get

Under the new program, how much you will receive will depend on your income and whether you rent or are a homeowner.

The largest group affected is homeowners that make less than $150,000 per year.

Starting in FY2023, at least 870,000 of those households will be eligible for a $1,500 rebate.

Here's what the other groups will receive.

  • Homeowners with incomes between $150,000 and $250,000: At least 290,000 eligible for a $1,000 property tax credit per year
  • Renters with incomes up to $150,000: At least 900,000 eligible for a $450 per year payment

New Jersey residents won't see any rebates, though, until May 2023.

Where does money from property taxes go?

Property taxes are used by local governments so they can provide certain public services.

The amount of money that goes towards these services will change depending on where you live.

Some of the main areas are:

  • Public schools
  • Parks
  • Public pools
  • Roads
  • Emergency services: law enforcement, fire department, ambulance services
  • Local government

Other local factors may lead to an increase in property taxes, such as road repairs, a new school being built, or an increase in your local government’s budget.

If the sales tax revenue in your area dips, your local government may hike property taxes to make up for the loss.

The Sun explains four things homebuyers need to know before making an offer.

Plus, check out the states offering tax rebates this year.

LOS ANGELES, CALIFORNIA – JUNE 14: Alabama Barker and Landon Barker attend the boohooMAN x Landon Barker launch party at Desert 5 Spot on June 14, 2022 in Los Angeles, California. (Photo by Phillip Faraone/Getty Images for boohooMAN)Credit: Getty Images - Getty

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