Sets flat gross income tax rate at 5.9 percent tax for all taxable income over $37,500 or $75,000, depending on filing status; exempts taxpayers with less income from gross income tax.

This bill (A 1850) sets a flat 5.9% tax rate on New Jersey gross income above $37,500 for single filers or $75,000 for married couples filing jointly, while exempting all income below those thresholds from taxation. It directly affects New Jersey residents whose taxable income exceeds these filing-status-specific limits. The key provision replaces previous tiered tax brackets with a single flat rate for income above the exemption thresholds. This change simplifies the tax structure for higher earners while maintaining tax exemption for lower-income taxpayers. The bill was introduced in 2026 and referred to the Assembly Commerce and Economic Development Committee.