Budget & Taxes (Income Tax)

in committee · New Jersey · Senate Feb 5, 2026

S 3311: 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 (S 3311) replaces New Jersey's current progressive income tax system with a flat 5.9% tax rate on income above specific thresholds. It directly affects individual taxpayers and families filing jointly whose income exceeds $37,500 (single filers) or $75,000 (joint filers). The bill exempts all income below these thresholds from state income tax, meaning lower earners pay nothing. This would simplify the tax structure by eliminating the current multi-rate system for most taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts income below thresholds, providing tax relief to lower/middle earners and simplifies tax structure per bill's explicit language.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · New Jersey · Senate Feb 5, 2026

S 3329: Excludes certain contributions to deferred compensation plans and provides deduction for certain individual retirement savings under the gross income tax.

This bill (S 3329) changes New Jersey's gross income tax rules to benefit taxpayers using specific retirement plans. It excludes certain contributions to deferred compensation plans (like employer-sponsored retirement savings) from taxable income and creates a deduction for eligible individual retirement savings. The key change amends the tax code to remove these specific retirement contributions from the calculation of taxable income. This directly affects New Jersey taxpayers who contribute to qualifying retirement plans, reducing their taxable income for state tax purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes retirement contributions from taxable income, reducing tax burden for eligible taxpayers - direct tax relief under NJ gross income tax code.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Feb 19, 2026

S 3541: Increases minimum income thresholds requiring filing and paying of gross income tax.

New Jersey Senate Bill S 3541 increases the income levels at which residents must file and pay state income tax. Starting January 1, 2026, the minimum threshold for single filers rises to $12,000 (from $10,000), for married couples filing jointly to $24,000 (from $20,000), and for married individuals filing separately to $12,000 (from $10,000). This change directly affects low-income earners who currently fall just above the previous thresholds but would no longer need to file or pay tax under the updated rules. The bill modifies New Jersey’s tax filing requirements without altering tax rates or brackets.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax filing thresholds for low-income earners, reducing their tax burden and aligning with tax relief for middle/lower income as per topic indicators.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Feb 9, 2026

S 3425: Requires development of online tax training for small and micro-businesses.

This bill requires New Jersey's Division of Taxation to create and maintain a free, online training program specifically for small and micro-businesses. The program will teach how to file and pay state taxes, including corporation business tax, gross income tax, and sales tax. It must be available on the Division's website and updated as tax laws change. The bill directly affects small and micro-business owners who need guidance on complying with New Jersey's tax filing requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates free tax compliance training for small businesses, promoting fiscal responsibility in tax administration without altering tax rates or funding.90% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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

A 940: Allows $250 gross income tax deduction for members of military on active duty.

This bill would allow New Jersey taxpayers who serve as active-duty members of the U.S. Armed Forces for the entire taxable year to deduct $250 from their gross income when calculating state income tax. It directly affects military members stationed in New Jersey who maintain full-time active duty status throughout a tax year. The deduction reduces taxable income by a fixed $250 amount for qualifying taxpayers. The law would take effect immediately upon enactment for tax years beginning on or after the following January 1.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $250 tax deduction for active-duty military, reducing taxable income - direct tax relief for qualifying taxpayers under Budget & Taxes policy.90% confidence

Sub-Topics Income Tax

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

A 1232: Requires State personal income tax materials to include notice of certain property tax relief programs.

This bill (A 1232) requires New Jersey's state personal income tax forms and instructions to include clear notices about three existing property tax relief programs: the Homestead Benefit Program (for primary residences), the Senior Freeze Program (for seniors), and property tax deductions/credits. It directly affects homeowners who file New Jersey income taxes and may qualify for these programs. The key mechanism is mandating that the Division of Taxation add these notices to all income tax return materials starting with the next taxable year. This change aims to improve taxpayer awareness of available relief without altering the programs themselves.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates notices about existing property tax relief programs on tax forms, increasing access to current benefits without altering tax structure.75% confidence

Sub-Topics Income Tax Property Tax

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

A 1124: Requires application for homestead property tax reimbursement to be filed with NJ gross income tax return.

Bill A1124 requires applicants for New Jersey's homestead property tax reimbursement to submit their application as part of their annual New Jersey gross income tax return, rather than as a separate filing. This change directly affects eligible claimants - seniors (65+), disabled individuals, or homeowners/renters meeting income limits ($92,969 or less gross income for 2022+ tax years) - who own or rent a primary residence in New Jersey. The bill amends existing law to integrate the reimbursement application process with the state income tax filing system. It does not alter eligibility criteria, benefit amounts, or income thresholds, only the submission method. This simplifies the process for applicants but does not change who qualifies for the reimbursement.

Topics ✓ Budget & TaxesSupports Budget & TaxesStreamlines tax reimbursement application for eligible low-income seniors/disabled, facilitating access to existing property tax relief. Supports fiscal relief for target groups.95% confidence ✓ HousingSupports HousingStreamlines access to property tax reimbursement for low-income homeowners/renters, reducing housing costs and strengthening affordability for eligible residents.85% confidence

Sub-Topics Income Tax Property Tax Property Taxes Renters

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in committee · New Jersey · General Assembly Feb 19, 2026

A 4412: Allows gross income tax deduction for firearms training expenses paid by law enforcement officers.

This bill allows eligible New Jersey law enforcement officers to deduct unreimbursed firearms training expenses from their gross income for tax purposes. It specifically covers costs like training courses, ammunition, and range fees paid out-of-pocket by officers whose duties include detecting, apprehending, or arresting offenders. To qualify, officers must meet firearm qualification standards under state law (N.J.S.2C:39-6). The deduction applies to taxable years beginning after the bill's enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax deduction for law enforcement training expenses, providing targeted tax relief that aligns with support indicators for tax policy.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Feb 2, 2026

S 3261: Increases maximum gross income tax deduction for homestead property taxes paid to $25,000.

This bill (S 3261) increases the maximum annual deduction for property taxes paid on a primary residence (homestead) from $15,000 to $25,000 for New Jersey residents filing state income taxes. It directly affects homeowners who itemize deductions on their state tax returns, allowing them to reduce taxable income by up to $25,000 in annual property taxes paid. The key change modifies Section 3 of the New Jersey Gross Income Tax Act to raise the cap, while maintaining existing rules about eligibility (e.g., primary residence requirement, limits for higher-income taxpayers). This is a direct policy change to tax benefits, not a procedural or commemorative measure.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases homestead property tax deduction cap, providing direct tax relief to homeowners by reducing taxable income for property taxes paid.90% confidence

Sub-Topics Income Tax Property Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1042: Provides gross income tax exclusion for distributions from individual retirement accounts to qualified charitable organizations.

This New Jersey bill (S 1042) would exclude charitable distributions from individual retirement accounts (IRAs) to qualified organizations from state gross income tax. It directly affects New Jersey residents who make direct gifts from their IRAs to eligible charities. The key provision amends the state tax code to add a specific exclusion for these contributions, meaning donors would not owe New Jersey income tax on the gifted amount. This change applies only to distributions made to organizations meeting federal tax-exempt criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill excludes charitable IRA distributions from NJ income tax, providing tax relief and aligning with support indicators for fiscal policy.95% confidence

Sub-Topics Income Tax

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