Budget & Taxes (Income Tax)

in committee · New Jersey · General Assembly Jan 13, 2026

A 1187: Modifies certain tax brackets under gross income tax.

This bill modifies New Jersey's individual income tax brackets, primarily raising the income threshold for the lowest tax rate. For tax years starting in 2022 and later, the 1.4% tax rate now applies to taxable income under $68,510 (up from $20,000), while the 1.75% rate begins at $68,510 instead of $20,000. These changes directly affect New Jersey residents filing individual income tax returns, particularly middle-income earners whose tax liability decreases under the revised brackets. The bill updates the existing tax code without altering the highest marginal rates for top earners.

Topics ✓ Budget & TaxesSupports Budget & TaxesRaises income threshold for lowest tax bracket, reducing liability for middle-income earners per bill summary.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · General Assembly Jan 13, 2026

A 1809: Allows gross income tax deduction for union dues paid to labor organizations.

This bill would allow New Jersey taxpayers to deduct union dues paid to labor organizations from their state gross income tax. It directly affects workers who pay dues to labor organizations (defined as groups addressing workplace issues like wages or conditions). To claim the deduction, taxpayers must provide verification of dues paid to the state tax division. The bill is currently pending in the Assembly Labor Committee and would apply to tax years starting after its enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deduction for union dues, offering tax relief to workers (middle/lower income), directly supporting fiscal relief within state taxation policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAllows tax deduction for union dues, directly supporting workers' ability to contribute to labor organizations advocating for workplace rights and collective bargaining.95% confidence

Sub-Topics Income Tax Collective Bargaining

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in committee · New Jersey · General Assembly Jan 13, 2026

A 1186: Permits taxpayers to deduct total amount of State property taxes paid on principal residence from gross income tax obligation.

This bill allows New Jersey residents to deduct the full amount of state property taxes paid on their principal residence from their gross income tax obligation, removing the previous $15,000 annual cap. It directly affects homeowners who itemize deductions on their state tax returns, particularly those with property tax bills exceeding $15,000. Key provisions include clarifying deductions for co-owners, rental properties, and adjustments for high-income taxpayers (those earning over $250,000 annually may face reduced deductions). The bill amends existing tax code sections to implement these changes while maintaining income-based limitations.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves $15k cap on property tax deductions, providing direct tax relief to homeowners with high property taxes, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Property Tax

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in committee · New Jersey · General Assembly Jan 13, 2026

A 3007: Permits tax credit against gross income tax for certain adoption expenses.

This bill provides New Jersey taxpayers adopting foster children with a credit against their state gross income tax for eligible adoption expenses. The credit covers medical, therapeutic, and counseling costs for "special needs" children and lasts until the child turns 18 (or 21 with special education needs), or for life if the child has a severe disability certified by state disability directors. It directly affects adoptive parents of foster children who qualify as "special needs" under state definitions. The credit applies annually to taxable years beginning after January 1, 2008, and requires the Division of Taxation to create implementing rules. The bill is pending in the Assembly Children, Families and Food Security Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing liability for adoptive parents of special needs children, offering tax relief aligned with middle-income support.95% confidence ✓ HealthcareSupports HealthcareBill explicitly covers medical, therapeutic, and counseling costs for special needs children, directly expanding healthcare access through tax credit for healthcare services.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · General Assembly Jan 13, 2026

A 1611: Removes income-based limitations on gross income tax exclusion for pension and retirement income.

This bill removes income-based limits on New Jersey's tax exclusion for pension and retirement income. Currently, taxpayers with higher incomes face reduced or eliminated exclusions (e.g., capping exclusions at $150,000 gross income for 2021-2022). The bill eliminates these income thresholds, allowing all eligible pensioners aged 62+ or disabled (per the law) to exclude their full pension amount from state taxes regardless of income level. It directly affects New Jersey residents receiving pension, retirement, or disability benefits who meet age/disability criteria. The change modifies existing tax code sections (N.J.S.54A:6-10 and P.L.1977, c.273) to remove the income restrictions.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves income limits on pension tax exclusion, providing tax relief for eligible retirees regardless of income, directly advancing tax policy within Budget & Taxes.95% confidence

Sub-Topics Income Tax Pensions

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in committee · New Jersey · General Assembly Jan 13, 2026

A 276: Reduces gross income tax rates by ten percent over three years.

This bill reduces New Jersey's individual gross income tax rates by 10% across all income brackets, phased over three years. It directly affects all New Jersey individual taxpayers who file income tax returns (excluding charitable trusts and pension-related trusts). The key mechanism lowers the percentage rates applied to each income tier, as shown in the amended tax tables, without changing income thresholds. The reduction applies uniformly to all taxable income levels, starting from the effective date of the bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces tax rates uniformly across all income brackets, providing broad tax relief which aligns with fiscal responsibility and middle-income tax relief indicators.95% confidence

Sub-Topics Business Taxes Income Tax Pensions

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in committee · New Jersey · General Assembly Jan 13, 2026

A 165: Requires DEP to evaluate extending sewer service in Lake Hopatcong region; allows gross income tax deduction for septic system maintenance under certain circumstances.

This bill requires New Jersey's Department of Environmental Protection (DEP) to study within 90 days whether extending sewer service in the Lake Hopatcong watershed would significantly improve the lake's water quality. If the DEP determines sewer extension is not feasible or wouldn't improve water quality, homeowners in the designated watershed area become eligible for a tax deduction covering half the cost of septic system maintenance at their primary residence. To qualify, homeowners must submit receipts showing maintenance complied with DEP regulations, and the DEP must define the eligible geographic area and conduct public education about the deduction. The bill directly affects residents in the Lake Hopatcong watershed who rely on septic systems, offering a financial incentive to maintain them if sewer upgrades are not implemented.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax deduction for septic system maintenance, providing tax relief to homeowners. This aligns with tax relief for middle/lower income under Budget & Taxes topic.95% confidence ✓ EnvironmentSupports EnvironmentBill mandates DEP study to improve Lake Hopatcong water quality via sewer extension; if not feasible, offers tax deduction for septic maintenance to prevent pollution.95% confidence

Sub-Topics Income Tax Water Quality

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in committee · New Jersey · General Assembly Jan 13, 2026

A 2720: Allows gross income tax credit for portion of certain child care expenses.

This bill creates a New Jersey gross income tax credit for taxpayers who pay for licensed child care for children under six years old. The credit amount (15% to 20% of expenses) depends on the child care center's Grow NJ Kids rating (3 to 5 stars), with higher-rated centers offering larger credits. Taxpayers earning under $25,000 annually can receive the full credit as a cash refund if it exceeds their tax bill, while higher-income taxpayers may carry forward unused credit to the next tax year. The credit cannot be claimed alongside New Jersey's existing child and dependent care credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for lower-income families' child care costs, offering direct tax relief for those under $25k annually, aligning with tax relief for middle/lower income.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Feb 12, 2026

S 3518: Allows gross income tax refunds to be credited against taxpayer's delinquent local property taxes.

This bill allows New Jersey to automatically apply a taxpayer's gross income tax refund (including homestead rebates and credits) to pay off delinquent local property taxes. It directly affects taxpayers who owe unpaid property taxes and are due a state income tax refund, such as those receiving earned income tax credits or homestead benefits. The Department of the Treasury will use the refund to cover the property tax debt, with child support obligations taking priority over all other debts. Taxpayers will be notified if their refund is applied to reduce their property tax delinquency.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill uses state tax refunds to offset property tax debt, providing relief to lower-income taxpayers with homestead benefits, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Property Tax

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in committee · New Jersey · General Assembly Jan 13, 2026

A 1426: Eliminates veterans' gross income tax deduction requirement that New Jersey National Guard member serve in federal active duty status.

This bill removes a requirement that New Jersey National Guard members must have served in "federal active duty status" to qualify for a $3,000 annual state tax deduction. It directly affects New Jersey National Guard members who were honorably discharged but never activated for federal duty, making them eligible for the same tax deduction previously only available to those with federal active duty service. The key change amends the state tax code (N.J.S.54A:3-1) to eliminate the "federal active duty status" condition from the veterans' deduction provision. This is a concrete policy change that expands eligibility for the deduction to all honorably discharged National Guard members, regardless of federal activation.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax deduction eligibility for National Guard members, providing tax relief and reducing state tax revenue through broader access to existing benefit.95% confidence ✓ VeteransSupports VeteransExpands tax benefit eligibility for NJ National Guard veterans by removing federal duty requirement, directly advancing financial support for veterans with honorable discharge.95% confidence

Sub-Topics Income Tax National Guard & Reserve Veteran Education Veteran Healthcare

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