Raises income eligibility threshold for pension and retirement income exclusion from gross income to $125,000.

This bill (A702) raises New Jersey's income threshold for excluding pension and retirement income from state taxable income from $100,000 to $125,000 annually. It directly affects seniors aged 62+ or disabled individuals receiving retirement benefits who file taxes as singles, married couples, or married filing separately. Under the change, taxpayers with gross income up to $125,000 (instead of $100,000) can exclude a set amount of pension/retirement income - such as $75,000 for single filers - without paying state tax on it. The bill updates the existing exclusion policy, which previously used a $100,000 threshold dating to 2005.