This bill increases the portion of rent that counts toward property tax deductions for eligible renters in New Jersey, raising it from 18% to 30% for tenants with annual gross income of $150,000 or less. It directly affects low-to-moderate-income renters who occupy residential rental properties as their primary residence. The key change modifies the definition of "rent constituting property taxes" in the tax code, allowing a larger share of rent payments to reduce taxable income. This applies to all qualifying residential rental units, including those in mobile home parks, but maintains the 18% rate for renters earning over $150,000 annually.
This bill eliminates the 3-year time limit for New Jersey tax authorities to reassess income tax when a taxpayer received an erroneous refund due to intentional fraud. It directly affects taxpayers who intentionally filed false returns to obtain extra money back from the state. The key change removes the previous 3-year deadline, allowing tax assessments at any time for cases where fraud caused the refund. This applies only to deliberate fraud, excluding accidental errors, negligence, or reliance on incorrect advice. The law retroactively covers cases from the five years before the bill's enactment.
This bill (A1183) amends New Jersey's gross income tax code to exclude certain retirement contributions from taxable income. It directly affects New Jersey residents who contribute to qualified pension plans, deferred compensation plans, or certain individual retirement savings accounts (like IRAs). The key provision allows these specific contributions to be excluded when calculating taxable income, reducing the tax burden for eligible individuals. The bill creates a new deduction for eligible retirement savings, aligning New Jersey tax treatment more closely with federal rules for these contributions. This is a procedural tax code change with no new programs or funding mechanisms.
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.
This bill (A 3691) would exempt income earned in the form of tips from New Jersey's state gross income tax. It directly affects service industry workers (such as servers, bartenders, and hair stylists) who receive tips as part of their earnings. The key provision amends New Jersey's tax code to remove "tips" from the list of taxable income categories under the definition of "gross income." As a result, tips would no longer be subject to state income tax, reducing the tax burden for affected workers. The bill is currently pending in the Assembly Labor Committee.
This bill (A 2955) proposes tax incentives for New Jersey employers who hire individuals with disabilities. It would allow employers to claim credits against insurance premiums tax, corporation business tax, and gross income tax, including: 30% of the first $6,000 in wages for a new employee with a disability during their first year (20% in the second year), up to $600 for work-related transportation costs, and small business access improvement credits. The credits would apply only to employees certified by the Division of Vocational Rehabilitation Services as meeting the federal ADA definition of disability. The bill is pending before the Assembly Commerce and Economic Development Committee.
S 3551 would amend New Jersey's gross income tax law to allow employees of public schools and federal tax-exempt organizations (such as hospitals, churches, and social service groups) to exclude their retirement savings contributions from current taxable income. Currently, New Jersey permits this tax deferral for employees of private businesses but not for these specific retirement plans used by tax-exempt organizations. The bill extends the same tax treatment to these employees by aligning New Jersey's rules with federal tax code provisions for retirement savings. This change would take effect for taxable years beginning after the bill's enactment.
This bill creates a New Jersey state tax deduction for businesses that donate food from their inventory to qualified charities. It allows taxpayers to deduct the same amount for state income tax as they could claim under federal tax rules (as of December 2013) for donations of "apparently wholesome" food - meaning food meeting safety standards but unsellable due to appearance, age, or surplus. The deduction applies regardless of whether the business claims a federal charitable deduction. It directly affects New Jersey businesses that donate excess food inventory to IRS-qualified charitable organizations.
This bill would create a refundable tax credit for New Jersey residents who make extra principal payments on their primary home mortgage beyond the required minimums. The credit equals 50% of the excess payments (up to $1,000 annually) for mortgages on a primary residence that qualify as "traditional" (15-30 year loans with level payments). It applies only to single filers with income between $125,000-$135,000 or joint filers with income between $250,000-$270,000, with the credit amount reduced based on income in these ranges. The credit cannot be claimed for more than 10 consecutive tax years.
This bill provides New Jersey taxpayers with a refundable tax credit of up to $500 per year for costs paid to high-impact tutors. It directly affects individual taxpayers who use tutoring services proven to significantly improve student learning through research, as defined in the bill. The credit applies to the tax year the tutoring is received, and if it reduces a taxpayer’s total tax liability to zero, the remaining credit amount is paid as a cash refund. The credit is limited to one claim per married couple filing separately.
