Budget & Taxes in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 2401: Revises gross income tax rates for joint filers and similar taxpayers and designated as Marriage Penalty Elimination Act.

This bill adjusts New Jersey's income tax rates for married couples filing jointly (and similar filers like heads of household), primarily by increasing the tax-free threshold. Starting in 2022, the lowest tax bracket applies to taxable income under $40,000 (up from $20,000), meaning married couples earning under this amount pay 1.4% on all income instead of a phased rate. The bill also updates rates for higher income brackets but focuses on reducing the tax burden for middle-income married couples, which is the basis for its "Marriage Penalty Elimination" designation.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax

in committee · New Jersey · Senate Jan 13, 2026

S 2023: Requires cost of living increase to be granted in each of two calendar years for certain retired members and beneficiaries of PFRS; makes appropriation.

This bill provides two annual cost-of-living adjustments (COLAs) to retired police and fire personnel and their beneficiaries (surviving spouses, children, or other designated recipients) who receive monthly payments from New Jersey’s Police and Firemen’s Retirement System (PFRS). Eligibility is limited to those whose original monthly benefit was at or below 450% of the federal poverty level for a single person (approximately $61,155 annually in 2022). The adjustment amount is calculated using a formula based on the regional Consumer Price Index, capped between 1% and 3% of the index, and paid on January 1 of the year after the bill’s effective date and the following year. The state would appropriate funds from the General Fund to cover these increases, with no impact on those receiving benefits above the eligibility threshold.

Topics ✓ Budget & Taxes

Sub-Topics Appropriations Pensions State Budget

in committee · New Jersey · Senate Jan 13, 2026

S 1739: Requires establishment and implementation, in certain circumstances, of wildlife management plans for open space and farmland, and authorizes use of constitutionally dedicated CBT revenues to finance activities undertaken pursuant to such plans.

S 1739 requires New Jersey to create wildlife management plans for certain open space and farmland areas, specifically where conservation efforts are underway. It directly affects state agencies (like the Department of Environmental Protection), local governments, and nonprofit organizations using constitutionally dedicated conservation funds. The key mechanism authorizes the use of existing cigarette tax revenues (CBT funds) to pay for activities under these new wildlife management plans. This bill does not create new taxes but changes how specific conservation funds can be applied to support wildlife habitat management on preserved lands.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Conservation Wildlife

in committee · New Jersey · Senate Feb 9, 2026

S 3013: Establishes telecommunication fee to support Statewide behavioral health crisis system of care.

New Jersey's S 3013 imposes a $0.40 monthly fee per mobile line on residents using commercial mobile or IP-enabled voice services (excluding Lifeline program participants). Telecom companies collect this fee from customers and remit it quarterly to a new "9-8-8 Suicide and Crisis Hotline Trust Fund Account" in the state Treasury. Funds in the account will finance specific crisis services including 9-8-8 call center operations, mobile crisis response teams, crisis stabilization centers, and public awareness campaigns. The bill mandates annual reporting on fund usage and requires the Legislature to review fee adjustments based on service needs.

Topics ✓ Budget & Taxes

in committee · New Jersey · Senate Jan 13, 2026

S 2025: Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

This bill creates a refundable tax credit for New Jersey renters who use their rental unit as their primary residence. It replaces an existing tax deduction with a direct credit equal to 30% of rent paid for residential rental property (capped at $15,000 annually), effectively reducing the renter's tax bill dollar-for-dollar. The credit applies to tenants in standard rental units (not condos, co-ops, or manufactured homes in parks), targeting those whose rent includes property taxes. This policy directly benefits low-to-moderate income renters by providing immediate tax relief instead of a future deduction.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Income Tax Tax Credits Affordable Housing Renters Tenant Rights

in committee · New Jersey · Senate Jan 13, 2026

SCR 64: Proposes constitutional amendment authorizing municipalities to provide partial property tax exemption of up to 15 percent of assessed value for primary residence of certain volunteer first responders.

SCR 64 proposes a constitutional amendment requiring New Jersey's legislature to create a law allowing municipalities to offer a partial property tax exemption of up to 15% on the assessed value of a primary residence. This exemption would apply specifically to active volunteer firefighters, first aid, or rescue squad members whose service benefits the municipality where they live. Municipalities would need to pass a separate ordinance to implement the exemption, and could choose to offer less than the 15% maximum. The amendment must be approved by voters before it can take effect.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Jan 13, 2026

S 2724: Increases Work First New Jersey Child Care appropriation by $28 million in FY2026 annual appropriations act to ensure full funding of child care subsidy program.

This bill increases New Jersey's Work First New Jersey Child Care subsidy program funding by $28 million in the FY2026 budget, raising the appropriation from $565.8 million to $593.8 million. It directly affects lower-income families who rely on state child care subsidies to cover expenses, reversing a recent pause in new applications and increased family copayments. The key provision requires the state to resume accepting new applications and return to pre-August 1, 2025 copayment rates (2-6% of income), restoring the program to its prior operational status. This addresses a projected $25-$30 million shortfall that had forced the Department of Human Services to limit enrollment and raise costs for families.

Topics ✓ Budget & Taxes

Sub-Topics Appropriations

in committee · New Jersey · Senate Jan 13, 2026

S 2096: Provides three-month reduction or suspension of tax on highway fuels based on average retail price of unleaded regular gasoline; makes an appropriation.

New Jersey's S 2096 adjusts state fuel taxes based on monthly average gas prices. If the average price of unleaded regular gasoline exceeds $4.50 per gallon, it triggers a 50% tax reduction; $5.01-$5.50 triggers a 75% reduction; and over $5.50 suspends the tax entirely for motor fuel and petroleum products taxes. The bill applies to gasoline, diesel, and other highway fuels sold in New Jersey during June-August 2022, requiring retailers to pass tax savings directly to consumers. Businesses must report tax savings and fuel sales to the Division of Taxation.

Topics ✓ Budget & Taxes

Sub-Topics Appropriations

in committee · New Jersey · Senate Jan 13, 2026

S 1615: Excludes all New Jersey Lottery winnings from gross income tax and eliminates related withholding requirements.

This bill eliminates state income tax on all New Jersey Lottery winnings, removing the current $10,000 threshold that previously made larger prizes taxable. It directly affects New Jersey residents who win lottery prizes, ensuring all winnings - regardless of amount - are excluded from gross income tax calculations. The bill also eliminates the requirement for the New Jersey State Lottery to withhold 3% tax from prize payments, which currently applies to winnings over $10,000. This changes the tax treatment from a partial exclusion to a full exemption for all lottery prizes. The policy change would apply to all taxable years beginning after the bill's enactment date.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax

in committee · New Jersey · Senate Jan 13, 2026

S 1588: Establishes annual sales tax holiday for certain retail sales of computers, school computer supplies, school supplies, school art supplies, and school instructional materials.

S 1588 creates an annual two-month sales tax holiday in New Jersey for eligible school-related purchases during August and September. It exempts from tax individual shoppers buying computers under $3,000, school computer supplies under $1,000, and specific school supplies (like notebooks and art materials), school art supplies, and instructional materials (such as textbooks and maps) for non-business use. The tax-free period runs from August 1 to September 30 each year, directly benefiting families preparing for the school year. This policy aligns with similar tax holidays in 19 states, providing immediate savings without requiring special applications or rebates.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Sales Tax Curriculum

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