SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE, No. 3954
STATE OF NEW JERSEY
DATED: JUNE 22, 2021
The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3954.
This bill provides a limited exclusion from the gross income tax on pension and retirement income for taxpayers with income between $100,000 and $150,000. Under current law, a taxpayer whose income exceeds $100,000 becomes ineligible for the pension and retirement income exclusion. The bill provides a limited exclusion as follows:
If the taxpayer has income greater than $100,000, but not more than $125,000:
Filer Type |
Amount of exclusion |
Married filing jointly |
50 percent of pension payments and other retirement income |
Married filing separately |
25 percent of pension payments and other retirement income |
Single |
37.5 percent of pension payments and other income |
If the taxpayer has income greater than $125,000, but not more than $150,000
Filer Type |
Amount of exclusion |
Married filing jointly |
25 percent of pension payments and other retirement income |
Married filing separately |
12.5 percent of pension payments and other retirement income |
Single |
18.75 percent of pension payments and other retirement income |
FISCAL IMPACT:
The Office of Legislative Services estimates that this bill would reduce gross income tax revenue, which is deposited into the Property Tax Relief Fund by $51.5 million to $72.9 million annually.