Nearly 1.8 million New Jersey homeowners and renters could get some money back from the state under Gov. Phil Murphy’s new property tax relief program proposed in his 2023 budget.

Murphy highlighted the ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) Property Tax Relief Program, which proposes to pay out $900 million in property tax relief to qualified homeowners and renters, during a visit to Somerville on Thursday.

“I am proud of the forward progress this administration is making on the affordability challenge we inherited several years ago,” said Murphy. “Through the ANCHOR Property Tax Relief Program, more New Jersey taxpayers will receive the support they need to offset the costs of property taxes, making our state stronger.

This new program would replace the Homestead Rebate Program, which only affected 470,000 homeowners annually and provided an average benefit of $626. Renters were also not eligible for the current Homestead program.

Under the new program, homeowners making up to $250,000 per year will be eligible to receive an average $700 rebate in 2023 to offset property tax costs. Also, renters making up to $100,000 per year will eligible for a rebate of up to $250 to help with rent increases due to property taxes

“Working-class families of New Jersey deserve our support when it comes to keeping homes affordable,” said Lt. Governor Sheila Oliver, who serves as Commissioner of the Department of Community Affairs. “We are taking the proper steps forward to provide property tax relief for the families who need it most.”

If approved as part of the 2023 budget, Murphy said he wants to grow the program over the next three years to provide as much as $1,150 on average per eligible household. The investment would cost the state about $1.5 billion annually.

I am happy to join Governor Murphy today as he highlights the importance of the ANCHOR program,” said Somerville Mayor Dennis Sullivan. “This initiative will give our residents the support they need when it comes to property tax relief. I applaud the Governor for the work he has done to make New Jersey more affordable.”

“Housing is a human right. Though property taxes and rental costs are not set by the state, it is our responsibility as a state to ease the burden on residents who are simply trying to make ends meet and keep a roof over their heads,” said Assemblywoman Sadaf Jaffer. “We want our communities to maintain stability and ensure that people are able to stay in their homes they’ve built over a lifetime, in communities they’ve invested in over generations.”