(Sponsorship Updated As Of: 2/28/2022)
SENATE, No. 676
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Somerset)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Senators Sarlo and Connors
SYNOPSIS
Indexes for inflation taxable income brackets under New Jersey gross
income tax.
CURRENT VERSION OF TEXT
As reported by the Senate Budget and Appropriations Committee with
technical review.
S676 A.M.BUCCO, OROHO
2
EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is
not enacted and is intended to be omitted in the law.
Matter underlined thus is new matter.
AN ACT indexing for inflation the taxable income brackets under 1
the New Jersey gross income tax, amending N.J.S.54A:2-1. 2
3
BE IT ENACTED by the Senate and General Assembly of the State 4
of New Jersey: 5
6
1. N.J.S.54A:2-1 is amended to read as follows: 7
54A:2-1. Imposition of tax. There is hereby imposed a tax for 8
each taxable year (which shall be the same as the taxable year for 9
federal income tax purposes) on the New Jersey gross income as 10
herein defined of every individual, estate or trust (other than a 11
charitable trust or a trust forming part of a pension or profit-sharing 12
plan), subject to the deductions, limitations and modifications 13
hereinafter provided, determined in accordance with the following 14
tables with respect to taxpayers' taxable income: 15
a. For married individuals filing a joint return and individuals 16
filing as head of household or as surviving spouse for federal income 17
tax purposes: 18
(1) for taxable years beginning on or after January 1, 1991 but 19
before January 1, 1994: 20
21
If the taxable income is: The tax is: 22
23
Not over $20,000.00.......... 2% of taxable income 24
25
Over $20,000.00 but not 26
over $50,000.00........ $400.00 plus 2.5% of the 27
excess over $20,000.00 28
Over $50,000.00 but not 29
over $70,000.00........ $1,150.00 plus 3.5% of the 30
excess over $50,000.00 31
Over $70,000.00 but not 32
over $80,000.00........ $1,850.00 plus 5.0% of the 33
excess over $70,000.00 34
Over $80,000.00 but not 35
over $150,000.00...... $2,350.00 plus 6.5% of the 36
excess over $80,000.00 37
38
Over $150,000.00 ............ $6,900.00 plus 7.0% of the 39
excess over $150,000.00 40
41
(2) For taxable years beginning on or after January 1, 1994 but 42
before January 1, 1995: 43
S676 A.M.BUCCO, OROHO
3
If the taxable income is: The tax is: 1
2
Not over $20,000.00...... 1.900% of taxable income 3
4
Over $20,000.00 but not 5
over $50,000.00....... $380.00 plus 2.375% of the 6
excess over $20,000.00 7
Over $50,000.00 but not 8
over $70,000.00...... $1,092.50 plus 3.325% of the 9
excess over $50,000.00 10
Over $70,000.00 but not 11
over $80,000.00....... $1,757.50 plus 4.750% of the 12
excess over $70,000.00 13
Over $80,000.00 but not 14
over $150,000.00....... $2,232.50 plus 6.175% of the 15
excess over $80,000.00 16
17
Over $150,000.00 .......... $6,555.00 plus 6.650% of the 18
excess over $150,000.00 19
20
(3) for taxable years beginning on or after January 1, 1995 but 21
before January 1, 1996: 22
23
If the taxable income is: The tax is: 24
25
Not over $20,000.00.......... 1.700% of taxable income 26
27
Over $20,000.00 but not 28
over $50,000.00........ $340.00 plus 2.125% of the 29
excess over $20,000.00 30
Over $50,000.00 but not 31
over $70,000.00........ $977.50 plus 2.975% of the 32
excess over $50,000.00 33
Over $70,000.00 but not 34
over $80,000.00........ $1,572.50 plus 4.250% of the 35
excess over $70,000.00 36
Over $80,000.00 but not 37
over $150,000.00...... $1,997.50 plus 6.013% of the 38
excess over $80,000.00 39
40
Over $150,000.00 ............ $6,206.60 plus 6.580% of the 41
excess over $150,000.00 42
43
(4) for taxable years beginning on or after January 1, 1996 but 44
before January 1, 2004: 45
S676 A.M.BUCCO, OROHO
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If the taxable income is: The tax is: 1
2
Not over $20,000.00............ 1.400% of taxable income 3
4
Over $20,000.00 but not 5
over $50,000.00......... $280.00 plus 1.750% of the 6
excess over $20,000.00 7
Over $50,000.00 but not 8
over $70,000.00........ $805.00 plus 2.450% of the 9
excess over $50,000.00 10
Over $70,000.00 but not 11
over $80,000.00........ $1,295.50 plus 3.500% of the 12
excess over $70,000.00 13
Over $80,000.00 but not 14
over $150,000.00...... $1,645.00 plus 5.525% of the 15
excess over $80,000.00 16
17
Over $150,000.00 ............... $5,512.50 plus 6.370% of the 18
excess over $150,000.00 19
20
(5) for taxable years beginning on or after January 1, 2004 but 21
before January 1, 2018: 22
23
If the taxable income is: The tax is: 24
25
Not over $20,000.00.......... 1.400% of taxable income 26
27
Over $20,000.00 but not 28
over $50,000.00........ $280.00 plus 1.750% of the 29
excess over $20,000.00 30
Over $50,000.00 but not 31
over $70,000.00........ $805.00 plus 2.450% of the 32
excess over $50,000.00 33
Over $70,000.00 but not 34
over $80,000.00....... $1,295.50 plus 3.500% of the 35
excess over $70,000.00 36
Over $80,000.00 but not 37
over $150,000.00...... $1,645.00 plus 5.525% of the 38
excess over $80,000.00 39
Over $150,000.00 but not 40
over $500,000.00...... $5,512.50 plus 6.370% of the 41
excess over $150,000.00 42
43
Over $500,000.00 ............ $27,807.50 plus 8.970% of the 44
excess over $500,000.00 45
(6) for taxable years beginning on or after January 1, 2018, but 46
before January 1, 2020: 47
S676 A.M.BUCCO, OROHO
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If the taxable income is: The tax is: 1
2
Not over $20,000.00.......... 1.400% of taxable income 3
4
Over $20,000.00 but not 5
over $50,000.00...... $280.00 plus 1.750% of the 6
excess over $20,000.00 7
Over $50,000.00 but not 8
over $70,000.00....... $805.00 plus 2.450% of the 9
excess over $50,000.00 10
Over $70,000.00 but not 11
over $80,000.00....... $1,295.50 plus 3.500% of the 12
excess over $70,000.00 13
Over $80,000.00 but not 14
over $150,000.00..... $1,645.00 plus 5.525% of the 15
excess over $80,000.00 16
Over $150,000.00 but not 17
over $500,000.00..... $5,512.50 plus 6.370% of the 18
excess over $150,000.00 19
Over $500,000.00 but not 20
over $5,000,000.00.. $27,807.50 plus 8.970% of the 21
excess over $500,000.00 22
23
Over $5,000,000.00 .......... $431,457.50 plus 10.75% of the 24
excess over $5,000,000.00 25
26
(7) for taxable years beginning on or after January 1, 2020: 27
28
If the taxable income is: The tax is: 29
30
Not over $20,000.00........ 1.400% of taxable income 31
32
Over $20,000.00 but not 33
over $50,000.00.... $280.00 plus 1.750% of the 34
excess over $20,000.00 35
36
Over $50,000.00 but not 37
over $70,000.00.... $805.00 plus 2.450% of the 38
excess over $50,000.00 39
40
Over $70,000.00 but not 41
over $80,000.00... $1,295.50 plus 3.500% of the 42
excess over $70,000.00 43
44
Over $80,000.00 but not 45
over $150,000.00.. $1,645.00 plus 5.525% of the 46
excess over $80,000.00 47
S676 A.M.BUCCO, OROHO
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Over $150,000.00 but not 1
over $500,000.00.. $5,512.50 plus 6.370% of the 2
excess over $150,000.00 3
4
Over $500,000.00 but not 5
over $1,000,000.00.. $27,807.50 plus 8.970% of the 6
excess over $500,000.00 7
8
Over $1,000,000.00... $72,657.50 plus 10.750% of the 9
excess over $1,000,000.00 10
11
b. For married individuals filing separately, unmarried individuals 12
other than individuals filing as head of household or as a surviving 13
spouse for federal income tax purposes, and estates and trusts: 14
(1) for taxable years beginning on or after January 1, 1991 but 15
before January 1, 1994: 16
17
If the taxable income is: The tax is: 18
19
Not over $20,000.00.......... 2% of taxable income 20
21
Over $20,000.00 but not 22
over $35,000.00....... $400.00 plus 2.5% of the 23
excess over $20,000.00 24
Over $35,000.00 but not 25
over $40,000.00....... $775.00 plus 5.0% of the 26
excess over $35,000.00 27
Over $40,000.00 but not 28
over $75,000.00....... $1,025.00 plus 6.5% of the 29
excess over $40,000.00 30
31
Over $75,000.00 ........... $3,300.00 plus 7.0% of the 32
excess over $75,000.00 33
34
(2) for taxable years beginning on or after January 1, 1994 but 35
before January 1, 1995: 36
37
If the taxable income is: The tax is: 38
39
Not over $20,000.00.......... 1.900% of taxable income 40
41
Over $20,000.00 but not 42
over $35,000.00........ $380.00 plus 2.375% of the 43
excess over $20,000.00 44
45
Over $35,000.00 but not 46
over $40,000.00........ $736.25 plus 4.750% of the 47
excess over $35,000.00 48
S676 A.M.BUCCO, OROHO
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Over $40,000.00 but not 1
over $75,000.00........ $973.75 plus 6.175% of the 2
excess over $40,000.00 3
4
Over $75,000.00 .......... $3,135.00 plus 6.650% of the 5
excess over $75,000.00 6
7
(3) for taxable years beginning on or after January 1, 1995 but 8
before January 1, 1996: 9
10
If the taxable income is: The tax is: 11
12
Not over $20,000.00.......... 1.700% of taxable income 13
14
Over $20,000.00 but not 15
over $35,000.00....... $340.00 plus 2.125% of the 16
excess over $20,000.00 17
Over $35,000.00 but not 18
over $40,000.00.......... $658.75 plus 4.250% of the 19
excess over $35,000.00 20
Over $40,000.00 but not 21
over $75,000.00....... $871.25 plus 6.013% of the 22
excess over $40,000.00 23
24
Over $75,000.00 .......... $2,975.80 plus 6.580% of the 25
excess over $75,000.00 26
27
(4) for taxable years beginning on or after January 1, 1996 but 28
before January 1, 2004: 29
30
If the taxable income is: The tax is: 31
32
Not over $20,000.00.......... 1.400% of taxable income 33
34
Over $20,000.00 but not 35
over $35,000.00........ $280.00 plus 1.750% of the 36
excess over $20,000.00 37
Over $35,000.00 but not 38
over $40,000.00........ $542.50 plus 3.500% of the 39
excess over $35,000.00 40
Over $40,000.00 but not 41
over $75,000.00........ $717.50 plus 5.525% of the 42
excess over $40,000.00 43
44
Over $75,000.00............ $2,651.25 plus 6.370% of the 45
excess over $75,000.00 46
(5) for taxable years beginning on or after January 1, 2004 but 47
before January 1, 2018: 48
S676 A.M.BUCCO, OROHO
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If the taxable income is: The tax is: 1
2
Not over $20,000.00.......... 1.400% of taxable income 3
4
Over $20,000.00 but not 5
over $35,000.00........ $280.00 plus 1.750% of the 6
excess over $20,000.00 7
Over $35,000.00 but not 8
over $40,000.00........ $542.50 plus 3.500% of the 9
excess over $35,000.00 10
Over $40,000.00 but not 11
over $75,000.00....... $717.50 plus 5.525% of the 12
excess over $40,000.00 13
Over $75,000.00 but not 14
over $500,000.00...... $2,651.25 plus 6.370% of the 15
excess over $75,000.00 16
17
Over $500,000.00 ............ $29,723.75 plus 8.970% of the 18
excess over $500,000.00 19
20
(6) for taxable years beginning on or after January 1, 2018, but 21
before January 1, 2020: 22
23
If the taxable income is: The tax is: 24
25
Not over $20,000.00.......... 1.400% of taxable income 26
27
Over $20,000.00 but not 28
over $35,000.00........ $280.00 plus 1.750% of the 29
excess over $20,000.00 30
Over $35,000.00 but not 31
over $40,000.00........ $542.50 plus 3.500% of the 32
excess over $35,000.00 33
Over $40,000.00 but not 34
over $75,000.00........ $717.50 plus 5.525% of the 35
excess over $40,000.00 36
Over $75,000.00 but not 37
over $500,000.00...... $2,651.25 plus 6.370% of the 38
excess over $75,000.00 39
Over $500,000.00 but not 40
over $5,000,000.00... $29,723.75 plus 8.970% of the 41
excess over $500,000.00 42
43
Over $5,000,000.00 .......... $433,373.75 plus 10.75% of the 44
excess over $5,000,000.00 45
46
(7) for taxable years beginning on or after January 1, 2020: 47
S676 A.M.BUCCO, OROHO
9
If the taxable income is: The tax is: 1
2
Not over $20,000.00...... 1.400% of taxable income 3
4
Over $20,000.00 but not 5
over $35,000.00....... $280.00 plus 1.750% of the 6
excess over $20,000.00 7
Over $35,000.00 but not 8
over $40,000.00...... $542.50 plus 3.500% of the 9
excess over $35,000.00 10
Over $40,000.00 but not 11
over $75,000.00...... $717.50 plus 5.525% of the 12
excess over $40,000.00 13
Over $75,000.00 but not 14
over $500,000.00... $2,651.25 plus 6.370% of the 15
excess over $75,000.00 16
Over $500,000.00 but not 17
over $1,000,000.00.. $29,723.75 plus 8.970% of the 18
excess over $500,000.00 19
20
Over $1,000,000.00.... $74,573.75 plus 10.750% of the 21
excess over $1,000,000.00 22
23
c. For the purposes of this section, an individual who would be 24
eligible to file as a head of household for federal income tax purposes 25
but for the fact that such taxpayer is a nonresident alien, shall 26
determine tax pursuant to subsection a. of this section. 27
d. For the purposes of this section, for taxable year 2018, 28
withholding by every employer from salaries, wages and other 29
remuneration paid by an employer for services rendered described in 30
subsections a. and b. of this section, in excess of $5,000,000 during 31
that taxable year, shall be at the rate of 15.6% as soon as practicable 32
but no later than September 1, 2018. The Director of the Division of 33
Taxation is authorized to do all things necessary to implement the 34
withholding tax prescribed by this section for taxable year 2018. 35
e. No additions to tax or penalty shall be imposed under 36
N.J.S.54A:9-6 for insufficient payment of estimated tax that may 37
otherwise be due on salaries, wages and other remuneration received 38
before September 1, 2018, on which there is a rate of tax imposed 39
pursuant to subsections a. and b. of this section. 40
f. An employer maintaining an office or transacting business 41
within this State and making payment of any salaries, wages and 42
remuneration subject to New Jersey gross income tax or making 43
payment of any remuneration for employment subject to contribution 44
under the New Jersey "unemployment compensation law," pursuant to 45
R.S.43:21-1 et seq., that is subject to New Jersey gross income tax 46
shall not be subject to interest, penalties or other costs that may 47
otherwise be imposed for insufficient withholding of salaries, wages 48
S676 A.M.BUCCO, OROHO
10
and other remuneration made before September 1, 2018, that is 1
directly attributable to the enactment of the taxable income tables and 2
tax rates in subsections a. and b. of this section. 3
g. The director shall annually recompute the taxable income 4
bracket amounts and tax amount per taxable income bracket by 5
multiplying each adjusted taxable income bracket amount by the cost-6
of-living adjustment, and recomputing the taxable income bracket 7
amounts at the statutory tax rates with the recomputed bracket 8
amounts. Notwithstanding the taxable income bracket amounts and 9
tax amount per taxable income bracket provided in the tax tables in 10
this section, each taxpayer shall use the adjusted taxable income 11
bracket amounts and tax amount per taxable income bracket as 12
computed by the director for the applicable taxable year. The director 13
shall round the recomputed taxable income bracket amounts to the 14
next highest multiple of $10. 15
h. For the purposes of this section, "cost-of-living adjustment" 16
means the factor calculated by dividing the consumer price index for 17
all urban consumers for the nation, as prepared by the United States 18
Department of Labor as of the close of the 12-month period ending on 19
August 31 of the calendar year prior to the calendar year in which the 20
taxable year begins, by that index as of the close of the 12-month 21
period ending on August 31 of the calendar year preceding the 22
calendar year in which P.L. , c. (pending before the Legislature as 23
this bill) takes effect. 24
(cf: P.L.2020, c.94, s.1) 25
26
2. This act shall take effect immediately and shall apply to 27
taxable years beginning on and after January 1 next following the 28
date of enactment. 29