STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator JOHN F. MCKEON
District 27 (Essex and Passaic)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
Co-Sponsored by:
Senators Singleton and Diegnan
SYNOPSIS
Provides gross income tax exclusion for military compensation paid to State residents for out-of-State military service.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act excluding certain military compensation from gross income tax, amending N.J.S.54A:6-7.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:6-7 is amended to read as follows:
54A:6-7. a. Compensation paid by the United States for service in the Armed Forces of the United States performed:
(1) by an individual not domiciled in this State; or
(2) by an individual domiciled in this State but stationed or deployed outside of this State for a minimum of six months of the taxable year.
b. Amounts received during the taxable year as mustering-out payments with respect to service in the Armed Forces of the United States.
c. Amounts received during the taxable year as housing and subsistence allowances by members of the active and reserve components of the Armed Forces of the United States, and by New Jersey National Guard members while on State active duty.
(cf: P.L.2005, c.63, s.1)
2. This act shall take effect immediately and apply to taxable years beginning on or after the date of enactment.
STATEMENT
This bill allows a gross income tax exclusion for certain military compensation paid to members of the United States Armed Forces who are domiciled in New Jersey but who serve their military duty at a station or deployment outside of the State of New Jersey for a minimum of six months of the taxable year.