Inflation Costs New Jerseyans More than a Rebate Check

In a little over a week, New Jerseyans will be checking their mailboxes for a property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. rebate courtesy of the ANCHOR property tax relief program. But many of those boxes will turn up empty: after all, the ANCHOR gross incomeFor individuals, gross income is the total of all income received from any source before taxes or deductions. It includes wages, salaries, tips, interest, dividends, capital gains, rental income, alimony, pensions, and other forms of income. For businesses, gross income (or gross profit) is the sum of total receipts or sales minus the cost of goods sold (COGS)—the direct costs of producing goods cutoff of $250,000 has not risen with inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spendin since the first rebate checks were sent in 2023 based on residents’ 2019 income.

If someone surpassed that income threshold by even a few dollars in 2025, they get no check at all this year. With prices rising by about 26 percent between 2019 and 2025, many New Jerseyans who got a rebate before and saw their incomes keep pace with inflation will be check-less.

Missing out on a rebate is certainly disheartening, but New Jersey wallets are getting actively drained by an even bigger problem in the taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. code: the state’s graduated-rate income tax thresholds don’t change with inflation, either.