diff --git a/changelog.d/nj-staynj-property-tax-relief.changed.md b/changelog.d/nj-staynj-property-tax-relief.changed.md
new file mode 100644
index 00000000000..dfac5ffc07c
--- /dev/null
+++ b/changelog.d/nj-staynj-property-tax-relief.changed.md
@@ -0,0 +1 @@
+Update New Jersey Stay NJ property tax relief baseline calculations.
diff --git a/policyengine_us/parameters/gov/household/household_state_benefits.yaml b/policyengine_us/parameters/gov/household/household_state_benefits.yaml
index 6f6817d5bff..08587a63acd 100644
--- a/policyengine_us/parameters/gov/household/household_state_benefits.yaml
+++ b/policyengine_us/parameters/gov/household/household_state_benefits.yaml
@@ -173,6 +173,99 @@ values:
     - ar_child_care_subsidies
     # Washington child care subsidies
     - wa_child_care_subsidies
+  2026-01-01:
+    # Delaware benefits
+    - de_ssp
+    - de_child_care_subsidies
+    # Indiana benefits
+    - in_ssp
+    - in_child_care_subsidies
+    # Connecticut benefits
+    - ct_ssp
+    # Georgia benefits
+    - ga_ssp
+    # Maine benefits
+    - me_ssp
+    # Missouri benefits
+    - mo_ssp
+    # Massachusetts benefits
+    - ma_state_supplement
+    # Maryland benefits
+    - md_paa
+    # Michigan benefits
+    - mi_ssp
+    # Minnesota benefits
+    - mn_msa
+    # Colorado benefits
+    - co_state_supplement
+    - co_oap
+    - co_child_care_subsidies
+    # California benefits
+    - ca_child_care_subsidies
+    - ca_cvrp
+    - ca_care
+    - ca_fera
+    - ca_la_ez_save
+    - ca_la_infant_supplement
+    - ca_la_expectant_parent_payment
+    - ca_capi
+    - ca_state_supplement
+    # Alabama benefits
+    - al_ssp
+    - al_child_care_subsidies
+    # Alaska benefits
+    - ak_ssp
+    # Arizona benefits
+    - az_child_care_subsidies
+    # Florida benefits
+    - fl_oss
+    # Idaho benefits
+    - id_aabd
+    - id_child_care_subsidies
+    # Kentucky benefits
+    - ky_ssp
+    # Georgia benefits
+    - ga_child_care_subsidies
+    # Maryland benefits
+    - md_child_care_subsidies
+    # Nebraska benefits
+    - ne_aabd
+    - ne_child_care_subsidies
+    # New Mexico benefits
+    - nm_ssi_state_supplement
+    # South Carolina benefits
+    - sc_ssi_state_supplement
+    # Texas benefits
+    - tx_ssi_state_supplement
+    # Virginia benefits
+    - va_child_care_subsidies
+    # West Virginia benefits
+    - wv_child_care_subsidies
+    # North Carolina benefits
+    - nc_scca
+    # South Carolina benefits
+    - sc_child_care_subsidies
+    # Massachusetts benefits
+    - ma_eaedc
+    - ma_tafdc
+    # DC benefits
+    - dc_ossp
+    # Kansas benefits
+    - ks_sspp
+    # Hawaii benefits
+    - hi_oss
+    # Washington benefits
+    - wa_ssp
+    - wa_sfa
+    - wa_rca
+    # Louisiana benefits
+    - la_oss
+    # Arkansas benefits
+    - ar_child_care_subsidies
+    # Washington child care subsidies
+    - wa_child_care_subsidies
+    # New Jersey benefits
+    - nj_property_tax_relief
 metadata:
   unit: list
   period: year
diff --git a/policyengine_us/parameters/gov/states/nj/tax/income/credits/property_tax_relief/income/additional_sources.yaml b/policyengine_us/parameters/gov/states/nj/tax/income/credits/property_tax_relief/income/additional_sources.yaml
new file mode 100644
index 00000000000..587fb1575fc
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/nj/tax/income/credits/property_tax_relief/income/additional_sources.yaml
@@ -0,0 +1,15 @@
+description: New Jersey uses these additional income sources when calculating property tax relief application income under the property tax relief program.
+metadata:
+  unit: list
+  period: year
+  label: New Jersey property tax relief additional income sources
+  reference:
+    - title: NJ Division of Taxation - PAS-1 Income Calculation
+      href: https://www.nj.gov/treasury/taxation/relief.shtml#collapsePAS
+    - title: 2025 Form PAS-1 instructions, lines 17a-17f and 18a-18f
+      href: https://www.nj.gov/treasury/taxation/pdf/25-pas1in.pdf#page=9
+values:
+  2025-01-01:
+    - tax_exempt_interest_income
+    - tax_exempt_ira_distributions
+    - social_security
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/anchor/nj_anchor.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/anchor/nj_anchor.yaml
index 0e8c07b1e09..10516414f23 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/anchor/nj_anchor.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/anchor/nj_anchor.yaml
@@ -686,3 +686,52 @@
     # Senior homeowner, income $250K at upper limit (uses <=)
     # Senior homeowner upper income tier: $1,250
     nj_anchor: 1_250
+
+- name: Edge case 17, homeowner ANCHOR is capped by property taxes paid.
+  period: 2024
+  input:
+    people:
+      person1:
+        age: 72
+        employment_income: 100_000
+        real_estate_taxes: 100
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # Senior homeowner lower income tier would be $1,750.
+    # Total property tax relief is capped by property taxes paid.
+    nj_anchor: 100
+
+- name: Edge case 18, homeowner ANCHOR is unchanged when property taxes exceed the benefit.
+  period: 2024
+  input:
+    people:
+      person1:
+        age: 72
+        employment_income: 100_000
+        real_estate_taxes: 2_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # Senior homeowner lower income tier is below property taxes paid.
+    nj_anchor: 1_750
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief.yaml
new file mode 100644
index 00000000000..7027533b8e4
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief.yaml
@@ -0,0 +1,112 @@
+- name: Case 1, combined relief reaches the Stay NJ target.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 10_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 500
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # Stay NJ target = 50% of $10,000 = $5,000.
+    nj_anchor: 1_750
+    nj_capped_senior_freeze: 500
+    nj_staynj: 2_750
+    nj_property_tax_relief: 5_000
+    household_state_benefits: 5_000
+
+- name: Case 2, combined relief is capped by property taxes paid.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 2_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 1_000
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # ANCHOR = $1,750 and Senior Freeze is capped to the remaining $250.
+    nj_anchor: 1_750
+    nj_capped_senior_freeze: 250
+    nj_staynj: 0
+    nj_property_tax_relief: 2_000
+    household_state_benefits: 2_000
+
+- name: Case 3, New Jersey property tax relief starts in 2026.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 10_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 500
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    nj_property_tax_relief: 0
+    household_state_benefits: 0
+
+- name: Case 4, Senior Freeze fully absorbs the Stay NJ residual without binding the property tax cap.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 12_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 6_000
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # Stay NJ target = 50% of $12,000 = $6,000.
+    # ANCHOR + capped Senior Freeze exceed that target, while total relief remains below property taxes.
+    nj_anchor: 1_750
+    nj_capped_senior_freeze: 6_000
+    nj_staynj: 0
+    nj_property_tax_relief: 7_750
+    household_state_benefits: 7_750
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief_income.yaml
new file mode 100644
index 00000000000..6c71fb2cfc6
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief_income.yaml
@@ -0,0 +1,168 @@
+- name: Case 1, property tax relief income includes PAS-1 additional income sources.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 60
+        employment_income: 80_000
+        tax_exempt_interest_income: 1_000
+        tax_exempt_ira_distributions: 2_000
+        social_security_retirement: 4_000
+        total_disability_payments: 3_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 90_000
+
+- name: Case 2, disability pension is excluded at full retirement age.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 50_000
+        total_disability_payments: 3_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 50_000
+
+- name: Case 3, property tax relief income sums across head and spouse.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        tax_exempt_interest_income: 5_000
+        is_tax_unit_head: true
+      person2:
+        age: 69
+        social_security_retirement: 20_000
+        is_tax_unit_spouse: true
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 125_000
+
+- name: Case 4, property tax relief income includes tax-exempt interest.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 80_000
+        tax_exempt_interest_income: 1_234
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 81_234
+
+- name: Case 5, property tax relief income includes tax-exempt IRA distributions.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 80_000
+        tax_exempt_ira_distributions: 2_345
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 82_345
+
+- name: Case 6, property tax relief income includes Social Security.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 80_000
+        social_security_retirement: 7_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 87_000
+
+- name: Case 7, property tax relief income includes pre-retirement-age disability payments.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 60
+        employment_income: 80_000
+        total_disability_payments: 3_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 83_000
+
+- name: Case 8, property tax relief income is inactive before 2026.
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 60
+        employment_income: 80_000
+        tax_exempt_interest_income: 1_000
+        social_security_retirement: 4_000
+        total_disability_payments: 3_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: NJ
+  output:
+    nj_property_tax_relief_income: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_capped_senior_freeze.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_capped_senior_freeze.yaml
new file mode 100644
index 00000000000..e4a7ba0f035
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_capped_senior_freeze.yaml
@@ -0,0 +1,75 @@
+- name: Case 1, Senior Freeze below remaining property taxes is unchanged.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 10_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 500
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # ANCHOR = $1,750, leaving $8,250 before the property-tax cap.
+    nj_capped_senior_freeze: 500
+
+- name: Case 2, Senior Freeze is capped after ANCHOR.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 2_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 1_000
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # ANCHOR = $1,750, leaving $250 before the property-tax cap.
+    nj_capped_senior_freeze: 250
+
+- name: Case 3, no remaining property taxes after capped ANCHOR.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 100
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+        nj_senior_freeze: 1_000
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # ANCHOR is capped at the $100 property tax amount.
+    nj_anchor: 100
+    nj_capped_senior_freeze: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj.yaml
index c5ef0115c34..fcf09a74a24 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj.yaml
@@ -525,8 +525,8 @@
         state_fips: 34
   output:
     # min($100 * 50%, $6,500) = min($50, $6,500) = $50
-    # ANCHOR = $1,750
-    # max($50 - $1,750, 0) = $0
+    # ANCHOR is capped at property taxes paid = $100
+    # max($50 - $100, 0) = $0
     nj_staynj: 0
 
 - name: Edge case 10, couple where only spouse is 65 plus.
@@ -630,8 +630,8 @@
         state_fips: 34
   output:
     # min($1 * 50%, $6,500) = $0.50
-    # ANCHOR = $1,750
-    # max($0.50 - $1,750, 0) = $0
+    # ANCHOR is capped at property taxes paid = $1
+    # max($0.50 - $1, 0) = $0
     nj_staynj: 0
 
 - name: Edge case 14, senior who neither owns nor rents is ineligible.
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.yaml
index 8f0a71fc54d..e41772418f7 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.yaml
@@ -451,3 +451,76 @@
   output:
     # Age 95 >= 65, homeowner, income $50K < $500K
     nj_staynj_eligible: true
+
+- name: Edge case 11, senior homeowner is ineligible when PAS-1 income exceeds limit.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 490_000
+        social_security_retirement: 15_000
+        real_estate_taxes: 10_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # PAS-1 income includes Social Security, so $490K + $15K >= $500K.
+    nj_staynj_eligible: false
+
+- name: Edge case 12, age 65 homeowner with PAS-1 income just below limit is eligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        employment_income: 480_000
+        social_security_retirement: 19_999
+        real_estate_taxes: 10_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    # PAS-1 income includes Social Security, so $499,999 < $500,000.
+    nj_staynj_eligible: true
+
+- name: Edge case 13, Stay NJ eligibility is inactive before 2026.
+  period: 2024
+  input:
+    people:
+      person1:
+        age: 70
+        employment_income: 100_000
+        real_estate_taxes: 10_000
+        is_tax_unit_head: true
+    tax_units:
+      tax_unit:
+        members: [person1]
+    spm_units:
+      spm_unit:
+        members: [person1]
+        spm_unit_tenure_type: OWNER_WITH_MORTGAGE
+    households:
+      household:
+        members: [person1]
+        state_fips: 34
+  output:
+    nj_staynj_eligible: false
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/anchor/nj_anchor.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/anchor/nj_anchor.py
index 7dac68651e2..4dde48c2929 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/credits/anchor/nj_anchor.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/anchor/nj_anchor.py
@@ -24,7 +24,8 @@ def formula(tax_unit, period, parameters):
         is_senior = greater_age >= p.age_threshold
 
         # Determine if homeowner or renter
-        pays_property_taxes = add(tax_unit, period, ["real_estate_taxes"]) > 0
+        property_taxes = add(tax_unit, period, ["real_estate_taxes"])
+        pays_property_taxes = property_taxes > 0
         pays_rent = tax_unit("rents", period)
         is_homeowner = pays_property_taxes & ~pays_rent
         is_renter = pays_rent & ~pays_property_taxes
@@ -46,6 +47,7 @@ def formula(tax_unit, period, parameters):
         homeowner_amount = where(
             is_senior, homeowner_senior_amount, homeowner_non_senior_amount
         )
+        homeowner_amount = min_(homeowner_amount, property_taxes)
 
         # Calculate renter benefit amounts
         renter_amount = where(
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit.py
index 83e96e8111c..cb75da0f5fc 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit.py
@@ -8,9 +8,9 @@ class nj_property_tax_credit(Variable):
     unit = USD
     definition_period = YEAR
     reference = (
-        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2021/1040i.pdf#page=49"
-        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2022/1040i.pdf#page=50"
-        "https://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf#page=52"
+        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2021/1040i.pdf#page=49",
+        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2022/1040i.pdf#page=50",
+        "https://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf#page=52",
     )
     defined_for = "nj_property_tax_credit_eligible"
 
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit_eligible.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit_eligible.py
index 4f6e4d54c3f..2f560a0e02a 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit_eligible.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_credit/nj_property_tax_credit_eligible.py
@@ -7,9 +7,9 @@ class nj_property_tax_credit_eligible(Variable):
     label = "New Jersey property tax credit eligibility"
     definition_period = YEAR
     reference = (
-        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2021/1040i.pdf#page=26"
-        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2022/1040i.pdf#page=26"
-        "https://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf#page=27"
+        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2021/1040i.pdf#page=26",
+        "https://www.nj.gov/treasury/taxation/pdf/other_forms/tgi-ee/2022/1040i.pdf#page=26",
+        "https://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf#page=27",
     )
     defined_for = StateCode.NJ
 
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief.py
new file mode 100644
index 00000000000..60e87e3a801
--- /dev/null
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief.py
@@ -0,0 +1,24 @@
+from policyengine_us.model_api import *
+
+
+class nj_property_tax_relief(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "New Jersey property tax relief benefits"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://pub.njleg.state.nj.us/Bills/2022/PL23/75_.PDF#page=3",
+        "https://pub.njleg.state.nj.us/Bills/2024/PL24/88_.PDF",
+        "https://lis.njleg.state.nj.us/nxt/gateway.dll?f=templates&fn=default.htm&vid=Publish:10.1048/Enu",
+        "https://www.nj.gov/treasury/taxation/relief.shtml",
+        "https://www.nj.gov/treasury/taxation/staynj/calculation.shtml",
+    )
+    defined_for = StateCode.NJ
+
+    def formula_2026(tax_unit, period, parameters):
+        return (
+            tax_unit("nj_anchor", period)
+            + tax_unit("nj_capped_senior_freeze", period)
+            + tax_unit("nj_staynj", period)
+        )
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief_income.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief_income.py
new file mode 100644
index 00000000000..ab2c5bcc74d
--- /dev/null
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/property_tax_relief/nj_property_tax_relief_income.py
@@ -0,0 +1,39 @@
+from policyengine_us.model_api import *
+
+
+class nj_property_tax_relief_income(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "New Jersey property tax relief application income"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://www.nj.gov/treasury/taxation/relief.shtml#collapsePAS",
+        "https://www.nj.gov/treasury/taxation/pdf/25-pas1in.pdf#page=9",
+    )
+    defined_for = StateCode.NJ
+
+    def formula_2026(tax_unit, period, parameters):
+        p = parameters(
+            period
+        ).gov.states.nj.tax.income.credits.property_tax_relief.income
+
+        person = tax_unit.members
+        nj_gross_income = add(tax_unit, period, ["nj_gross_income"])
+        additional_sources = add(tax_unit, period, p.additional_sources)
+
+        age = person("age", period)
+        full_retirement_age = (
+            person("ss_full_retirement_age_months", period) / MONTHS_IN_YEAR
+        )
+        # Covers permanent-disability wage substitutes, not VA or military benefits.
+        total_disability_payments = person("total_disability_payments", period)
+        disability_pension_before_retirement_age = tax_unit.sum(
+            (age < full_retirement_age) * total_disability_payments
+        )
+
+        return (
+            nj_gross_income
+            + additional_sources
+            + disability_pension_before_retirement_age
+        )
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_capped_senior_freeze.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_capped_senior_freeze.py
new file mode 100644
index 00000000000..711edb6c728
--- /dev/null
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_capped_senior_freeze.py
@@ -0,0 +1,23 @@
+from policyengine_us.model_api import *
+
+
+class nj_capped_senior_freeze(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "New Jersey capped Senior Freeze benefit"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://pub.njleg.state.nj.us/Bills/2022/PL23/75_.PDF#page=3",
+        "https://pub.njleg.state.nj.us/Bills/2024/PL24/88_.PDF",
+        "https://lis.njleg.state.nj.us/nxt/gateway.dll?f=templates&fn=default.htm&vid=Publish:10.1048/Enu",
+        "https://www.nj.gov/treasury/taxation/staynj/calculation.shtml",
+        "https://www.nj.gov/treasury/taxation/ptr/index.shtml",
+    )
+    defined_for = StateCode.NJ
+
+    def formula(tax_unit, period, parameters):
+        property_taxes = add(tax_unit, period, ["real_estate_taxes"])
+        anchor = tax_unit("nj_anchor", period)
+        senior_freeze = tax_unit("nj_senior_freeze", period)
+        return min_(senior_freeze, max_(property_taxes - anchor, 0))
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj.py
index ea260a860d6..888a2f4f2db 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj.py
@@ -24,6 +24,6 @@ def formula(tax_unit, period, parameters):
 
         # Subtract ANCHOR and Senior Freeze benefits
         anchor_benefit = tax_unit("nj_anchor", period)
-        senior_freeze = tax_unit("nj_senior_freeze", period)
+        senior_freeze = tax_unit("nj_capped_senior_freeze", period)
 
         return max_(target_benefit - anchor_benefit - senior_freeze, 0)
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.py b/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.py
index 4d40f177582..c7efb1b5f23 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/credits/staynj/nj_staynj_eligible.py
@@ -12,16 +12,16 @@ class nj_staynj_eligible(Variable):
     )
     defined_for = StateCode.NJ
 
-    def formula(tax_unit, period, parameters):
+    def formula_2026(tax_unit, period, parameters):
         p = parameters(period).gov.states.nj.tax.income.credits.staynj
 
         # Age 65+ for head or spouse
         greater_age = tax_unit("greater_age_head_spouse", period)
         age_eligible = greater_age >= p.age_threshold
 
-        # Gross income below limit (strict less than per statute)
-        gross_income = add(tax_unit, period, ["nj_gross_income"])
-        income_eligible = gross_income < p.income_limit
+        # Property tax relief application income below limit (strict less than per statute)
+        income = tax_unit("nj_property_tax_relief_income", period)
+        income_eligible = income < p.income_limit
 
         # Must be homeowner (pays property taxes, not renter)
         pays_property_taxes = add(tax_unit, period, ["real_estate_taxes"]) > 0
diff --git a/policyengine_us/variables/gov/states/nj/tax/income/property_tax/nj_potential_property_tax_deduction.py b/policyengine_us/variables/gov/states/nj/tax/income/property_tax/nj_potential_property_tax_deduction.py
index 66fd3d6b033..769da2335b9 100644
--- a/policyengine_us/variables/gov/states/nj/tax/income/property_tax/nj_potential_property_tax_deduction.py
+++ b/policyengine_us/variables/gov/states/nj/tax/income/property_tax/nj_potential_property_tax_deduction.py
@@ -8,8 +8,8 @@ class nj_potential_property_tax_deduction(Variable):
     unit = USD
     definition_period = YEAR
     reference = (
-        "https://law.justia.com/codes/new-jersey/2022/title-54a/section-54a-3a-17/"
-        "https://www.state.nj.us/treasury/taxation/pdf/other_forms/tgi-ee/2021/1040i.pdf#page=25"
+        "https://law.justia.com/codes/new-jersey/2022/title-54a/section-54a-3a-17/",
+        "https://www.state.nj.us/treasury/taxation/pdf/other_forms/tgi-ee/2021/1040i.pdf#page=25",
     )
     defined_for = "nj_property_tax_deduction_eligible"