Governor Murphy Signs State Budget

Governor Murphy Signs State Budget

By Wiss (163 words)
Posted in Tax Services on July 02, 2018

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On July 1, 2018, Governor Murphy signed New Jersey's 2019 budget. Here are a few highlights of which you should be aware. 

Main highlights:

  • Increased income tax rate, effective for the 2018 tax year, to 10.75% for individual taxpayers whose incomes are at or above $5M
  • A temporary corporate business tax surcharge of 2.5% for 2018 & 2019 and 1.5% for 2020 & 2021
  • Effective for the 2018 tax year, an increase in the state property tax deduction cap from $10,000 to $15,000
  • There will be no increase in sales tax, the rate stays at 6.625%.
  • NJ Division of Taxation to hold a 90-day tax amnesty program this year
  • New tax on e-cigarettes and tobacco
  • New Child and Dependent Care Tax Credit
  • Increased Earned Income Tax Credit
  • Mandatory combined corporate reporting effective for tax years beginning after 2018
  • Modification of sourcing rules for services effective for tax years beginning after 2018
  • Research and development credit is nonrefundable for tax years beginning after 2017
For more information, contact Mary Vasilescu, CPA at mvasilescu@wiss.com or 973-994-9400.