New Jersey Lawmakers Agree on a Millionaires Tax

New Jersey Governor Phil Murphy and Democratic legislative leaders have agreed on a budget deal that will raise taxes on millionaires to fund rebates for about 800,000 middle-class households.

The deal will push the tax rate to 10.75 percent, from 8.97 percent, for the estimated 35,600 with incomes above $1 million. It also includes a maximum $500 tax rebate for those with at least one child and income below $150,000.

The Murphy budget estimated $390 million in revenue from the higher rate. The rebates will cost roughly $400 million.  The revenue, combined with the rebate, signals the state investing in New Jersey’s middle class.  The rebates won’t be distributed until after April 15, 2021.

The information presented here should not be construed as legal, tax, accounting, or valuation advice. No one should act on such information without appropriate professional advice and after a thorough examination of the particular situation.