Budget & Taxes (Income Tax)

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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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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