Official Site of The State of New Jersey

One Big Beautiful Bill Act (OBBBA) and the New Jersey Gross Income Tax

For Tax Years 2025 through 2028, under the One Big Beautiful Bill Act (OBBBA) there are new federal income tax deductions for senior citizens, overtime, and tips. However, the New Jersey Gross Income Tax (GIT) has defined categories of income and deductions and is not computed based on federal adjusted gross income. Therefore, federal deductions under the federal OBBBA regarding overtime, tips, and senior citizens do not affect a taxpayer's New Jersey Individual Income Tax return (Form NJ-1040, NJ-1040NR, or NJ-1041).

For information on New Jersey exemptions and deductions see the Division's Exemptions and Deductions webpage.