The NJ budget for fiscal year 2027 is a $60.7 billion spending plan signed on June 30, 2026, covering July 1, 2026, through June 30, 2027. It keeps a surplus of about $6.1 billion, makes a full $7.3 billion pension payment, raises K-12 school aid to about $12.4 billion and sets aside about $4.1 billion for direct property tax relief. It also expands the state Child Tax Credit and trims the Stay NJ senior tax benefit, with no new broad income tax increase.
Key Takeaways
- Total size: about $60.7 billion for FY2027.
- Surplus: about $6.08 billion, while the structural deficit was cut to about $1.35 billion.
- Pensions: a $7.3 billion payment, the sixth straight full contribution.
- Schools: K-12 aid of about $12.4 billion, up about $370 million, plus about $1.4 billion for preschool.
- Property tax relief: about $4.1 billion across ANCHOR, Stay NJ and the Senior Freeze.
- Families: the Child Tax Credit rises 25% for tax years 2026 through 2028.
- Stay NJ changes: a lower income cap and smaller maximum benefits than originally planned.
Figures come from state budget summaries and news coverage published after the budget was signed. Final spending can change through supplemental appropriations during the fiscal year.
NJ Budget FY2027 at a Glance
| Item | FY2027 figure |
|---|---|
| Total budget | About $60.7 billion |
| Date signed | June 30, 2026 |
| Fiscal year | July 1, 2026 – June 30, 2027 |
| Projected surplus | About $6.084 billion |
| Structural deficit | About $1.35 billion |
| Pension payment | $7.3 billion (sixth full payment) |
| K-12 formula aid | About $12.4 billion (+$370 million) |
| Preschool | About $1.4 billion |
| Direct property tax relief | About $4.1 billion |
| NJ Transit operating support | About $1.1 billion (+$235 million) |
Where the Money Goes
Pensions
The FY2027 NJ budget includes a $7.3 billion contribution to the state’s public employee pension system. It is the sixth consecutive full payment, after decades in which New Jersey skipped or shortened contributions. Full payments help stabilize the pension funds and support the state’s credit ratings.
Schools and preschool
K-12 school funding reaches about $12.4 billion, an increase of roughly $370 million. In addition, about $1.4 billion supports preschool programs. Individual districts see different changes, depending on the state school funding formula.
Property tax relief
Property taxes remain New Jersey’s biggest affordability issue. The budget sets aside about $4.1 billion for direct relief programs.
| Program | FY2027 funding | Who it helps |
|---|---|---|
| ANCHOR | About $2.186 billion | Homeowners and renters under income limits |
| Stay NJ | About $756 million | Homeowners age 65 and older |
| Senior Freeze (Property Tax Reimbursement) | About $345 million | Eligible seniors and people with disabilities |
NJ Transit
NJ Transit receives about $1.1 billion in state operating support, roughly $235 million more than the prior year. The extra money helps the agency cover rising operating costs for trains, buses and light rail.
Stay NJ Changes in the FY2027 NJ Budget
Stay NJ is the senior property tax program designed to cover up to half of a qualifying senior homeowner’s property tax bill. The FY2027 NJ budget scales it back to control costs. According to news coverage, the income cap drops to about $200,000, and benefits are tiered by income rather than paid at a single maximum. Some reports described tiered maximums of up to $6,500, $5,000 and $4,000.
Senior advocacy groups, including AARP New Jersey, criticized the changes. Because the details of Stay NJ can vary by income and filing, seniors should check the official application and the Division of Taxation’s guidance. The deadline to file the combined application for the 2026 cycle is November 2, 2026.
Child Tax Credit Expansion
The budget increases New Jersey’s Child Tax Credit by 25% for tax years 2026 through 2028. For the lowest-income eligible families, the top credit per child rises from $1,000 to $1,250. The credit is available for children under 6, with amounts phasing down as income rises.
Taxes and Business Changes
The FY2027 NJ budget does not include a new broad-based income tax increase. However, it includes several changes that mainly affect businesses.
| Change | What it means |
|---|---|
| Net operating loss limit | Businesses can use up to $1 million in net operating losses per year to offset taxable income |
| Employer Medicaid assessment | A new employer assessment tied to Medicaid costs, reported at roughly $325 to $725 per affected worker |
| No new income tax brackets | Personal income tax rates stay the same |
What the NJ Budget Means for Residents
- Homeowners and renters: ANCHOR benefits continue, which helps offset property taxes and rent.
- Seniors: Stay NJ continues, but with a lower income cap and smaller benefits for some households.
- Families with young children: a larger Child Tax Credit for 2026 through 2028.
- Commuters: more state support for NJ Transit operations.
- Parents and students: higher school aid, although local results vary.
- Employers: new costs from the Medicaid assessment and a cap on loss deductions.
Supporters and Critics
Supporters point to the surplus, the full pension payment and a smaller structural deficit as signs of discipline. They also highlight the Child Tax Credit increase and continued property tax relief. On the other hand, critics argue that the budget still spends more than recurring revenue, leaving a structural gap for future years. Senior groups oppose the Stay NJ cuts, and some business groups object to the new employer assessment.
How New Jersey’s Budget Process Works
- The Governor proposes a budget in a budget address, usually in late winter.
- Legislative committees hold hearings with state departments during the spring.
- Lawmakers negotiate changes with the Governor’s office.
- The Legislature passes the budget, typically in late June.
- The Governor signs it, often with line-item vetoes, before the July 1 deadline required by the state constitution.
Key Dates for New Jersey Residents
| Date | What it means |
|---|---|
| June 30, 2026 | FY2027 NJ budget signed |
| July 1, 2026 | Fiscal year 2027 begins |
| November 2, 2026 | Deadline for the combined ANCHOR, Stay NJ and Senior Freeze application |
| Tax years 2026–2028 | Enhanced Child Tax Credit in effect |
| June 30, 2027 | Fiscal year 2027 ends |
Budget Terms Explained
- Surplus: money left in the state’s accounts at the end of the fiscal year, which acts as a cushion against downturns.
- Structural deficit: the gap between recurring spending and recurring revenue. A state can have a surplus and a structural deficit at the same time if it draws down savings.
- Full pension payment: the amount actuaries say is needed to keep pension funds on track.
- Supplemental appropriation: extra spending approved during the year after the budget is signed.
- Line-item veto: the Governor’s power to remove or reduce specific spending lines without rejecting the whole budget.
Understanding these terms makes it easier to follow news coverage of the NJ budget, especially when the state begins planning the FY2028 budget next year.
The NJ budget also affects local budgets. School aid and property tax relief shape how much towns and school districts need to raise through local property taxes, so watch your municipal and school board budget meetings to see how state funding changes play out in your community.
Related NJ Money Guides
Energy costs are another pressure on household budgets, and our guide to NJ electric rates covers why bills rose and what relief exists. If you have lost a job, see our guide to NJ unemployment benefits, and check current pay rules in our NJ minimum wage guide. Browse more in our NJ News section or on the homepage.
Frequently Asked Questions About the NJ Budget
How big is the NJ budget for FY2027?
The FY2027 New Jersey budget totals about $60.7 billion and was signed on June 30, 2026.
Does the FY2027 NJ budget raise income taxes?
No. The budget does not include a new broad-based income tax increase, although it includes some business changes.
What changed for Stay NJ?
The budget lowers the Stay NJ income cap to about $200,000 and reduces maximum benefits through income tiers.
How much property tax relief is in the budget?
About $4.1 billion, including about $2.186 billion for ANCHOR, $756 million for Stay NJ and $345 million for the Senior Freeze.
What is the pension payment in the FY2027 budget?
The budget includes a $7.3 billion pension payment, the sixth consecutive full contribution.
How did the NJ Child Tax Credit change?
The credit increases by 25% for tax years 2026 through 2028, raising the top credit per child from $1,000 to $1,250.
When does the FY2027 NJ budget run?
New Jersey fiscal year 2027 runs from July 1, 2026, to June 30, 2027.
What is the deadline for ANCHOR, Stay NJ and Senior Freeze?
The combined application deadline for the 2026 cycle is November 2, 2026.
How much school aid is in the FY2027 NJ budget?
K-12 aid is about $12.4 billion, up about $370 million, with about $1.4 billion more for preschool.
The Bottom Line
The FY2027 NJ budget spends about $60.7 billion while keeping a large surplus, making a full pension payment and sending more money to schools and property tax relief. Families with young children gain from a larger Child Tax Credit, while seniors face a smaller Stay NJ program than first promised. Keep an eye on application deadlines for ANCHOR, Stay NJ and the Senior Freeze to make sure you receive the benefits you qualify for.
