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A1187 • 2026

Modifies certain tax brackets under gross income tax.

Modifies certain tax brackets under gross income tax.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
DiMaio, John
Last action
2026-01-13
Official status
Introduced, Referred to Assembly Commerce and Economic Development Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Modifies certain tax brackets under gross income tax.

Modifies certain tax brackets under gross income tax.

What This Bill Does

  • Modifies certain tax brackets under gross income tax.
  • Topic: Commerce and Economic Development Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-13 New Jersey Legislature

    Introduced, Referred to Assembly Commerce and Economic Development Committee

Official Summary Text

Modifies certain tax brackets under gross income tax.
Topic:
Commerce and Economic Development
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text
A1187

ASSEMBLY, No. 1187

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman JOHN DIMAIO

District 23 (Hunterdon, Somerset and Warren)

Co-Sponsored by:

Assemblywoman Dunn

SYNOPSIS

���� Modifies certain tax brackets under gross income tax.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
modifying certain tax brackets under the gross income
tax and amending N.J.S.54A:2-1.

����
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, 2022
:

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 10.75% of the
excess over $1,000,000.00

����
(8)�� for taxable years
beginning on or after January 1, 2022:

If the taxable income is: ������������������ The
tax is:

Not over $68,510.00 . . . . . .
. ��������� 1.400% of taxable income

Over $68,510.00 but not

����
over $119,892.00 . . . . . . . ��������� $959.14 plus 1.750% of
the excess over $68,510.00

Over $119,892.00 but not

����
over $137,020.00 . . . . . . . ��������� $1,858.33 plus 3.500% of
the excess over $119,892.00

Over $137,020.00 but not

����
over $256,910.00 . . . . . . . ��������� $2,457.81 plus 5.525% of
the excess over $137,020.00

Over $256,910.00 but not

����
over $500,000.00 . . . . . . ����������� $9,081.73 plus 6.370% of
the excess over $256,910.00

Over $500,000.00 but not

����
over $1,000,000.00 . . . . . . . . ���� $24,566.56 plus 8.970% of
the excess over $500,000.00

Over $1,000,000.00 . . . . . . . . �������� $69,416.56 plus 10.75% of
the excess over $1,000,000.00

���� 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, 2022
:

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 10.75% of the
excess over $1,000,000.00

����
(8)�� for taxable years
beginning on or after January 1, 2022:

If the taxable income is: ������������������ The
tax is:

Not over $34,255.00 . . . . . .
. ��������� 1.400% of taxable income

Over $34,255.00 but not

����
over $59,946.00 . . . . . . . ����������� $479.57 plus 1.750% of
the excess over $34,255.00

Over $59,946.00 but not

����
over $68,510.00 . . . . . . . ����������� $929.16 plus 3.500% of
the excess over $59,946.00

Over $68,510.00 but not

����
over $128,455.00 . . . . . . . ��������� $1,228.90 plus 5.525% of
the excess over $68,510.00

Over $128,455.00 but not

����
over $500,000.00 . . . . . . ����������� $4,540.86 plus 6.370% of
the excess over $128,455.00

Over $500,000.00 but not

����
over $1,000,000.00 . . . . . . . . ���� $28,208.28 plus 8.970% of
the excess over $500,000.00

Over $1,000,000.00 . . . . . . . . �������� $73,058.28 plus 10.75% of
the excess over $1,000,000.00

���� 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.��� This act shall take
effect immediately and apply to taxable years beginning on or after January 1,
2022.

STATEMENT

���� This bill modifies certain tax
brackets under the New Jersey gross income tax.� Specifically, the bill
modifies the income thresholds of the four lowest tax brackets so that many
low-income and middle-income taxpayers would be eligible for a lower marginal
tax rate. �

���� In recent months, record-high
inflation has made it more difficult for Americans to afford food, gas, and
other critical goods and services.� This bill would help New Jerseyans weather
this surge in prices by allowing them to keep more of their hard-earned money.