Trenton, NJ – In his annual budget address delivered on Tuesday, February 25, Governor Phil Murphy painted an optimistic picture of New Jersey’s affordability, claiming his administration has made historic strides in reducing the tax burden on residents. However, mounting evidence suggests that under his leadership, the state has become less affordable, with property taxes soaring and the cost of living climbing higher than ever.
Speaking before a joint session of the state Legislature, Murphy highlighted his administration’s efforts to bolster property tax relief, particularly through the ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) Program. “Over the past seven-plus years, and in partnership with Senate President Nick Scutari and Speaker of the General Assembly Craig Coughlin, we have delivered more property tax relief to the people of New Jersey than any Administration in history,” Murphy declared. He pointed to a dramatic increase in relief payments, noting, “Back in 2018, the average, eligible homeowner in New Jersey received $246 in property tax relief. This year, that average tax relief payment will be over $1,500 — a more than 500% increase in just seven years.”
Murphy also emphasized broader efforts to ease financial pressures, including restoring property tax relief for renters and introducing tax credits for working parents. “Beyond property taxes, we have also introduced new forms of relief, especially for our state’s working parents,” he said, framing his policies as a lifeline for families struggling with rising costs.
Yet, for many New Jerseyans, these claims ring hollow. Since Murphy took office in January 2018, the state’s average property tax bill has risen sharply. In 2021, the average bill hit a record $9,284—already the highest in the nation—and has continued to climb, with estimates suggesting an increase of roughly 16% over his tenure. Critics argue that while programs like ANCHOR provide temporary relief, they fail to address the root causes of escalating property taxes, driven by unchecked state spending and local government costs.
“Promising tax relief and delivering affordability are two different things,” said State Senator Declan O’Scanlon, the Republican budget officer. “The reality is that New Jersey families are paying more than ever. A $1,500 check doesn’t erase the fact that property taxes have skyrocketed under this administration.”
The numbers back up the critique. Despite the expansion of ANCHOR, which now benefits over two million homeowners and renters, the relief amounts to a fraction of the average annual property tax bill—effectively a bandage on a much larger wound. For a middle-class family receiving the maximum $1,500 ANCHOR payment, their effective property tax burden might drop temporarily, but it still leaves them facing bills far higher than they were a decade ago. Meanwhile, the state’s overall cost of living, including housing, utilities, and transportation, has outpaced national averages, making New Jersey increasingly unaffordable for working- and middle-class households.
Murphy’s proposed $58.1 billion budget for Fiscal Year 2026, unveiled during the address, includes $4.3 billion in direct property tax relief, maintaining funding for ANCHOR and the Senior Freeze program while allocating $600 million for the nascent Stay NJ initiative, which aims to halve property taxes for seniors starting in 2026. However, detractors like Assembly Minority Leader John DiMaio argue that these measures are short-term fixes that dodge systemic reform. “The root causes of higher property taxes continue to be unaddressed,” DiMaio said. “State spending doesn’t solve municipal problems—it just keeps the wound bleeding.”
Public sentiment, as reflected in posts on X, echoes this skepticism. One user remarked, “Property taxes up 16% in 7 years under Murphy, and he’s out here promising relief like it’s a victory. Jersey deserves better.” Another criticized the disconnect: “He compares tax relief to 8 years ago, but ignores how much worse affordability has gotten since then.”
As Murphy enters his final year in office, his budget address underscores a central tension of his tenure: a commitment to affordability initiatives juxtaposed against a reality of rising costs. While the governor touts record investments in tax relief, many New Jerseyans are left questioning whether these efforts are enough to offset the state’s deepening affordability crisis—or whether they’re simply too little, too late. With legislative negotiations set to shape the final budget by June 30, the debate over Murphy’s legacy on taxes and affordability is far from settled.
