NJ S2347

New Jersey residents serving in the U.S. Armed Forces who are stationed or deployed outside the state for a minimum of six months during the taxable year would have their military compensation excluded from state gross income tax.

Amends N.J.S.54A:6-7 to expand existing tax exclusions for military pay, which currently only apply to non-domiciled service members.

Housing and subsistence allowances for active duty, reserve, and National Guard members remain excluded from gross income tax under existing law.

Takes effect immediately upon enactment and applies to taxable years beginning on or after the enactment date.

Sponsored by Senators McKeon (District 27) and Greenstein (District 14), with co-sponsors Singleton and Diegnan, pre-filed for the 2026 legislative session.