Tax Updates for NJ Residents

Recently, Governor Christie signed into law, various changes to New Jersey taxes that could affect you in the short term and in the long term. The changes are summarized as follows:

– A $.23/gallon increase in the gas tax that will go into effect 11/1/16.

– A phase out of the NJ Estate Tax over two years. The threshold is increased from $675,000 to $2M on 1/1/17 and is eliminated effective 1/1/18.

-A decrease in the sales tax over two years from 7% to 6.875% on 1/1/17 and to 6.625% on 1/1/18.

– A $3,000 personal tax exemption for veterans. Veterans include those honorably discharged or released under honorable circumstances from active duty in the Armed Forces, a reserve component thereof or the National Guard of NJ in a federal active duty status.

– An increase in the NJ Earned Income Tax Credit from 30% to 35%.

– An increase in the retirement income exclusion over the next four years from $20,000 to $100,000 for those retirees age 62 and older who have gross income of $100,000 or less.

We will provide additional updates as more information becomes available.

If you have any questions, please call Dave at 609-631-9660 or John at 609-731-2446.