Thousands of New Jersey seniors will receive reduced property tax relief—or lose it entirely—under a revised Stay NJ program included in the state’s new $60.7 billion budget.

The budget agreement lowers the income eligibility cap for Stay NJ from $500,000 to approximately $200,000, meaning homeowners with annual incomes above that threshold will no longer qualify for the property tax relief program.

The changes go beyond Governor Mikie Sherrill’s original proposal, which called for reducing the income cap to $250,000.

The revised budget also replaces the program’s flat benefit structure with a tiered system based on income.

Under the new rules, seniors earning less than $100,000 annually remain eligible for the full $6,500 benefit. Those with incomes between $100,000 and $150,000 may receive up to $5,000, while seniors earning between $150,000 and $200,000 are eligible for up to $4,000.

State leaders say the changes are intended to make the program financially sustainable while directing the greatest tax relief to lower-income homeowners. Fiscal experts had previously warned that the original Stay NJ program could become prohibitively expensive without a dedicated funding source.

Critics argue the new $200,000 income cap will disqualify many seniors who still face New Jersey’s high property taxes despite earning above the new threshold.

Lawmakers are expected to approve the budget before the state’s July 1 deadline.