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Division of Taxation

Important Income Tax Changes for Tax Year 2017

Filing Deadline

The filing deadline is Monday, April 15, 2019 for calendar-year taxpayers - matching the due date for the federal Form 1040

Retirement Income Exclusions

Maximum amounts of pension and/or other retirement income that you can exclude from your gross income are being increased over a four-year period, beginning with Tax Year 2017.

2018 chart

Note: Your total income for the entire year must be $100,000 or less to qualify for the retirement income exclusions.

Personal Exemption for Veterans

You are eligible for a $3,000 exemption if you are a military veteran who was honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States on or any time before the last day of the tax year. Your spouse (or civil union partner) also is eligible for an exemption if he/she is a veteran who was honorably discharged or released under honorable circumstances and you are filing a joint return. When completing your tax return, fill in the oval (resident return) or check the box (nonresident return) to indicate that the exemption is being claimed. Otherwise, the exemption(s) will be disallowed. You must certify that you were honorably discharged or released under honorable circumstances from active duty the first time you claim the exemption(s). Note: This exemption can only be claimed by qualifying veterans, it does not pass through to a surviving spouse.

Use Tax Due on Out-of-State Purchases

New Jersey has reduced its Sales and Use Tax rate in two phases between 2017 and 2018. The rate was 7% until January 1, 2017, when it fell to 6.875%. The rate falls to 6.625% on January 1, 2018. When calculating your Use Tax due on out-of-state purchases, you must use the rate in effect at the time of the purchase.

Schedule NJ-BUS-1 (Form NJ-1040NR only)

The Division of Taxation updated NJ-BUS-1, Business Income Summary Schedule, for Form NJ-1040NR, to include a place to enter taxes that partnerships pay on behalf of nonresident individual partners. Form BUS-1 (for Form NJ-1040NR) is available online.

Designated Contribution

The New Jersey Yellow Ribbon Fund has been added to the list of organizations to which you can make a donation (contribution) on your tax return. The monies raised will be used to ease the burden of members of the Armed Forces on extended deployment. To donate to the new fund, you must specify code number “23” at the “Other Designated Contribution” line.

Credit for Excess UI/WF/SWF; DI; FLI Withheld

For 2017, the maximum employee unemployment insurance/workforce development partnership fund/supplemental workforce fund contribution was $142.38. The maximum employee disability insurance contribution was $80.40. The maximum employee family leave insurance contribution was $33.50. If you had two or more employers, you may have contributed more than the maximum amount(s). To claim credit on the tax return for excess withholding, complete Form NJ-2450. More information is available online.

Credit for Taxes Paid to Other Jurisdictions

The Philadelphia nonresident wage tax rate for 2017 was 3.4741% (.034741) from January 1 to June 30, and 3.4654% (.034654) from July 1 to December 31.

Property Tax Relief Programs

Homestead Benefit Program

  • Homeowners. New Jersey residents who own and occupy a home in New Jersey that is their principal residence may be eligible for a homestead benefit.
  • Tenants. There is no tenant rebate application.

Senior Freeze (Property Tax Reimbursement) The Senior Freeze program reimburses eligible senior citizens or disabled persons for property tax increases. Eligible residents must file a 2017 Senior Freeze application (Form PTR-1 or PTR-2). Information for 2017 will be posted as it becomes available.

Last Updated: Thursday, 12/15/22