New Jersey Tax Changes in 2017 and Beyond
December 29th, 2016
As part of the deal that raised New Jersey’s gas tax by 23 cents per gallon, the new year will see a reduction in the state’s Sales and Use tax. So, if you have anything left in your Amazon.com cart, you may want to wait until the New Year to make that purchase.
The new changes include:
- The first step in the elimination of New Jersey’s Estate Tax will take place when the threshold is raised from the current $675,000 to $2 Million. Then at the end of 2017 the Estate Tax is scheduled to be completed eliminated. This is an issue that CIANJ has championed for more than three years and came to fruition as part of a tax reform package that included a funding stream for the Transportation Trust Fund. New Jersey is one of only two states that have both an estate and inheritance tax making it less desirable to retire here. With the change, we expect to see the outmigration of New Jersey residents slow and hopefully reverse.
- Another element of the tax reform package is the reduction in the New Jersey Sales and Use Tax will decrease from 7% to 6.875%. Subsequently, after a full year, the Sales and Use Tax is set to drop again to 6.625%. (P.L. 2016, c. 57)
Some costs of doing business are rising however. Among them are:
- An increase in the state’s minimum wage to $8.44 per hour beginning on January 1. This cost of living adjustment is an increase of 6 cents over the 2016 minimum wage.
- Additionally, the Temporary Disability Insurance (TDI), Unemployment Insurance, Social Security and Medicare withholding schedules have changed. Be sure to check which of them apply to your business.
For more information: http://www.state.nj.us/treasury/taxation/su-change.shtml