Bill Text: NJ S3311 | 2026-2027 | Regular Session | Introduced
Bill Title: 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.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced) 2026-02-05 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S3311 Detail]
Download: New_Jersey-2026-S3311-Introduced.html
Sponsored by:
Senator CARMEN F. AMATO, JR.
District 9 (Ocean)
SYNOPSIS
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.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the gross income tax and amending N.J.S.54A:2-1 and N.J.S.54A:2-4.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:2-1 is amended to read as follows:
54A:2-1. Imposition of tax. There is hereby imposed a tax for each taxable year (which shall be the same as the taxable year for federal income tax purposes) on the New Jersey gross income as herein defined of every individual, estate or trust (other than a charitable trust or a trust forming part of a pension or profit-sharing plan), subject to the deductions, limitations and modifications hereinafter provided, determined in accordance with the following tables with respect to taxpayers' taxable income:
a. For married individuals filing a joint return and individuals filing as head of household or as surviving spouse for federal income tax purposes:
(1) for taxable years beginning on or after January 1, 1991 but before January 1, 1994:
If the taxable income is: The tax is:
Not over $20,000.00.......... 2% of taxable income
Over $20,000.00 but not
over $50,000.00...... $400.00 plus 2.5% of the excess
over $20,000.00
Over $50,000.00 but not
over $70,000.00...... $1,150.00 plus 3.5% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00...... $1,850.00 plus 5.0% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00.... $2,350.00 plus 6.5% of the
excess over $80,000.00
Over $150,000.00 ............ $6,900.00 plus 7.0% of the
excess over $150,000.00
(2) For taxable years
beginning on or after January 1, 1994 but before January 1, 1995:
If the taxable income is: The tax is:
Not over $20,000.00...... 1.900% of taxable income
Over $20,000.00 but not
over $50,000.00..... $380.00 plus 2.375% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00...... $1,092.50 plus 3.325% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00...... $1,757.50 plus 4.750% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00.... $2,232.50 plus 6.175% of the
excess over $80,000.00
Over $150,000.00 .......... $6,555.00 plus 6.650% of the
excess over $150,000.00
(3) for taxable years beginning on or after January 1, 1995 but before January 1, 1996:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.700% of taxable income
Over $20,000.00 but not
over $50,000.00...... $340.00 plus 2.125% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00...... $977.50 plus 2.975% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.... $1,572.50 plus 4.250% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00.... $1,997.50 plus 6.013% of the
excess over $80,000.00
Over $150,000.00 ............ $6,206.60 plus 6.580% of the
excess
over $150,000.00
(4) for taxable years beginning on or after January 1, 1996 but before January 1, 2004:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.400% of taxable income
Over $20,000.00 but not
over $50,000.00..... $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00..... $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00..... $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00... $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 ............ $5,512.50 plus 6.370% of the
excess over $150,000.00
(5) for taxable years beginning on or after January 1, 2004 but before January 1, 2018:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.400% of taxable income
Over $20,000.00 but not
over $50,000.00..... $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00..... $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.... $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00... $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 but not
over $500,000.00... $5,512.50 plus 6.370% of the
excess over $150,000.00
Over $500,000.00 ............ $27,807.50 plus 8.970% of the
excess over $500,000.00
(6) for taxable years beginning on or after January 1, 2018, but before January 1, 2020:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.400% of taxable income
Over $20,000.00 but not
over $50,000.00..... $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00..... $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.... $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00... $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 but not
over $500,000.00... $5,512.50 plus 6.370% of the
excess over $150,000.00
Over $500,000.00 but not
over $5,000,000.00.. $27,807.50 plus 8.970% of the
excess over $500,000.00
Over $5,000,000.00 .......... $431,457.50 plus 10.75% of the
excess over $5,000,000.00
(7) for taxable years beginning on or after January 1, 2020 but before January 1, 2027:
If the taxable income is: The tax is:
Not over $20,000.00........ 1.400%
of taxable income
Over $20,000.00 but not
over $50,000.00.... $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00.... $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00... $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00... $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 but not
over $500,000.00... $5,512.50 plus 6.370% of the
excess over $150,000.00
Over $500,000.00 but not
over $1,000,000.00.. $27,807.50 plus 8.970% of the
excess over $500,000.00
Over $1,000,000.00.......... $72,657.50 plus 10.750% of the
excess over $1,000,000.00
(8) for taxable years beginning on or after January 1, 2027, if the taxable income is over $75,000, the tax is 5.900% of taxable income in excess of $75,000.
b. For married individuals filing separately, unmarried individuals other than individuals filing as head of household or as a surviving spouse for federal income tax purposes, and estates and trusts:
(1) for taxable years beginning on or after January 1, 1991 but before January 1, 1994:
If the taxable income is: The tax is:
Not over $20,000.00.......... 2% of taxable income
Over $20,000.00 but not
over $35,000.00...... $400.00 plus 2.5% of the excess
over
$20,000.00
Over $35,000.00 but not
over $40,000.00..... $775.00 plus 5.0% of the excess
over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $1,025.00 plus 6.5% of the
excess over $40,000.00
Over $75,000.00 ................. $3,300.00 plus 7.0% of the
excess over $75,000.00
(2) for taxable years beginning on or after January 1, 1994 but before January 1, 1995:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.900% of taxable income
Over $20,000.00 but not
over $35,000.00..... $380.00 plus 2.375% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00...... $736.25 plus 4.750% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $973.75 plus 6.175% of the
excess over $40,000.00
Over $75,000.00 .......... $3,135.00 plus 6.650% of the
excess over $75,000.00
(3) for taxable years beginning on or after January 1, 1995 but before January 1, 1996:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.700% of taxable income
Over $20,000.00 but not
over $35,000.00..... $340.00 plus 2.125% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00..... $658.75 plus 4.250% of the
excess
over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $871.25 plus 6.013% of the
excess over $40,000.00
Over $75,000.00 ............. $2,975.80 plus 6.580% of the
excess over $75,000.00
(4) for taxable years beginning on or after January 1, 1996 but before January 1, 2004:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00..... $280.00 plus 1.750% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00..... $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $717.50 plus 5.525% of the
excess over $40,000.00
Over $75,000.00.............. $2,651.25 plus 6.370% of the
excess over $75,000.00
(5) for taxable years beginning on or after January 1, 2004 but before January 1, 2018:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00..... $280.00 plus 1.750% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00..... $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $717.50 plus 5.525% of the
excess
over $40,000.00
Over $75,000.00 but not
over $500,000.00... $2,651.25 plus 6.370% of the
excess over $75,000.00
Over $500,000.00 ............ $29,723.75 plus 8.970% of the
excess over $500,000.00
(6) for taxable years beginning on or after January 1, 2018, but before January 1, 2020:
If the taxable income is: The tax is:
Not over $20,000.00.......... 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00..... $280.00 plus 1.750% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00..... $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $717.50 plus 5.525% of the
excess over $40,000.00
Over $75,000.00 but not
over $500,000.00... $2,651.25 plus 6.370% of the
excess over $75,000.00
Over $500,000.00 but not
over $5,000,000.00.. $29,723.75 plus 8.970% of the
excess over $500,000.00
Over $5,000,000.00 .......... $433,373.75 plus 10.75% of the
excess over $5,000,000.00
(7) for taxable years beginning on or after January 1, 2020 but before January 1, 2027:
If the taxable income is: The tax is:
Not over $20,000.00...... 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00..... $280.00 plus 1.750% of the
excess
over $20,000.00
Over $35,000.00 but not
over $40,000.00..... $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00..... $717.50 plus 5.525% of the
excess over $40,000.00
Over $75,000.00 but not
over $500,000.00... $2,651.25 plus 6.370% of the
excess over $75,000.00
Over $500,000.00 but not
over $1,000,000.00.. $29,723.75 plus 8.970% of the
excess over $500,000.00
Over $1,000,000.00....... $74,573.75 plus 10.750% of the
excess over $1,000,000.00
(8) for taxable years beginning on or after January 1, 2027, if the taxable income is over $37,500, the tax is 5.900% of taxable income in excess of $37,500.
c. For the purposes of this section, an individual who would be eligible to file as a head of household for federal income tax purposes but for the fact that such taxpayer is a nonresident alien, shall determine tax pursuant to subsection a. of this section.
d. For the purposes of this section, for taxable year 2018, withholding by every employer from salaries, wages and other remuneration paid by an employer for services rendered described in subsections a. and b. of this section, in excess of $5,000,000 during that taxable year, shall be at the rate of 15.6% as soon as practicable but no later than September 1, 2018. The Director of the Division of Taxation is authorized to do all things necessary to implement the withholding tax prescribed by this section for taxable year 2018.
e. No additions to tax or penalty shall be imposed under N.J.S.54A:9-6 for insufficient payment of estimated tax that may otherwise be due on salaries, wages and other remuneration received before September 1, 2018, on which there is a rate of tax imposed pursuant to subsections a. and b. of this section.
f. An employer maintaining an office or transacting business within this State and making payment of any salaries, wages and remuneration subject to New Jersey gross income tax or making payment of any remuneration for employment subject to contribution under the New Jersey "unemployment compensation law," pursuant to R.S.43:21-1 et seq., that is subject to New Jersey gross income tax shall not be subject to interest, penalties or other costs that may otherwise be imposed for insufficient withholding of salaries, wages and other remuneration made before September 1, 2018, that is directly attributable to the enactment of the taxable income tables and tax rates in subsections a. and b. of this section.
(cf: P.L.2020, c.94, s.1)
2. N.J.S.54A:2-4 is amended to read as follows:
54A:2-4. Minimum taxable income. Notwithstanding any other provisions of this act, a taxpayer shall not be subject to tax under this act if:
a. [The] the taxpayer is filing as an unmarried individual, an estate or trust, with a gross income of:
(1) $3,000 or less for taxable years beginning before January 1, 1994[,] ;
(2) $7,500 or less for taxable years beginning on or after January 1, 1994 but before January 1, 1999[, and] ;
(3) $10,000 or less for taxable years beginning on or after January 1, 1999 but before January 1, 2027; and
(4) $37,500 or less for taxable years beginning on or after January 1, 2027;
b. [The] the taxpayer is determining tax pursuant to subsection a. of N.J.S.54A:2-1, or is a married couple filing a joint return, with a gross income of:
(1) $3,000 or less for taxable years beginning before January 1, 1994[,] ;
(2) $7,500 or less for taxable years beginning on or after January 1, 1994 but before January 1, 1999[,] ;
(3) $10,000 or less for taxable years beginning on or after January 1, 1999 but before January 1, 2000[,] ;
(4) $15,000 or less for taxable years beginning on or after January 1, 2000 but before January 1, 2001[, and] ;
(5) $20,000 or less for taxable years beginning on or after January 1, 2001 but before January 1, 2027; and
(6) $75,000 or less for taxable years beginning on or after January 1, 2027; or
c. [The] the taxpayer is a married person filing separately with a gross income of:
(1) $1,500 or less for taxable years beginning before January 1, 1994[,] ;
(2) $3,750 or less for taxable years beginning on or after January 1, 1994 but before January 1, 1999[,] ;
(3) $5,000 or less for taxable years beginning on or after January 1, 1999 but before January 1, 2000[,] ;
(4) $7,500 or less for taxable years beginning on or after January 1, 2000 but before January 1, 2001[, and] ;
(5) $10,000 or less for taxable years beginning on or after January 1, 2001 but before January 1, 2027; and
(6) $37,500 or less for taxable years beginning on or after January 1, 2027.
In the case of a nonresident, gross income shall mean gross income which such nonresident would have reported if he had been a resident.
(cf: P.L.1999, c.260, s.1)
3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2027.
STATEMENT
This bill revises the gross income tax rates for taxable years beginning on or after January 1, 2027, converting the gross income tax to a flat tax.
Under the bill, the tax rate imposed under the gross income tax would be 5.9 percent for all taxable income over: $37,500 for unmarried individuals, married individuals filing separately, or estates and trusts; and $75,000 for married individuals filing jointly, individuals filing as head of household, or individuals filing as a surviving spouse for federal income tax purposes. No other rate of tax would be imposed under the gross income tax. Taxpayers with income less than their applicable income threshold would not be subject to tax.
Under current law, the gross income tax is imposed in accordance with progressive income tax brackets, with tax rates ranging from 1.4 to 10.75 percent of taxable income. Currently, a taxpayer's filing status and amount of taxable income determines the amount of tax due. No tax is due under current law for single filers, married separate filers, estates, or trusts with not more than $10,000 in taxable income, or married joint filers with taxable income not more than $20,000.
