New JerseyNew Jersey would let taxpayers deduct documented tips from income
If enacted, taxpayers with documented tips from services could deduct them from New Jersey taxable income for tax years beginning on or after January 1 following enactment.
What it does
If enacted, taxpayers could deduct tips earned for services from New Jersey taxable income for tax years beginning on or after January 1 following enactment. They must provide the required tip records.
Argument forEligible taxpayers could pay less New Jersey income tax because documented tips would be subtracted from the income the state taxes.
Argument againstTaxpayers who lack employer tip statements or other required records might be unable to claim the deduction for tips they received.
More detail
New Jersey would let taxpayers deduct tip income from their state taxable income. The deduction would cover tips received for services during the tax year. The tips must appear in statements given to an employer under federal tax law or in other records the state tax director requires. The bill would take effect immediately if enacted, but the deduction would apply to tax years beginning on or after the January 1 following enactment.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 5Introduced in the Senate, Referred to Senate Budget and Appropriations CommitteeIntroduced
Taxes & Budget