Tax changes set forth by Governor Chris Christie are among the most common changes that will be seen in 2018. New Jersey will no longer collect estate and inheritance taxes, which will make Maryland the only state to do so. This is one of two changes that will be seen within the state’s taxes. We have compiled a list of some other changes that will be coming this year:
- Minimum wage on the rise: In 2018, New Jersey’s minimum wage will be $8.60. This is a 16 cent rise from last year’s minimum wage, $8.44. In 2016, the minimum wage was $8.38. This bump in the minimum wage will positively impact an estimated 200,000 workers.
- Decrease in sales tax: As of January 1, 2018, the New Jersey sales tax decreased to 6.63 percent. Last year, the state’s sales tax was 6.88 percent. According to the New Jersey Policy Perspective (NJPP), “the tax cut would save households with income between $49,000 and $79,000, $86. Savings increase to $116 for households with $79,000 to $132,000 in income; $255 for households with $286,000 to 808,000 in income; and $723 for households with more than $808,000 in income.”
- Carbon monoxide education for drivers: New drivers will be required to learn about the dangers of carbon monoxide poisoning caused by motor vehicles. Drivers will also receive relevant safety tips and have questions geared to carbon monoxide poisoning on exams. This new law is related to the Rosa-Bonilla Family Act, which was adopted after a woman and two children died in a horrific carbon monoxide incident during snowy weather.
- Driver’s licenses get new expiration dates: Instead of Garden State driver’s licenses expiring on the last day of the month every four years, licenses will now expire four years on your birthday. This change was made to cut down the wait times and lines that form at motor vehicle agencies at the end of each month.
- Increase in the retirement income tax exclusion: The income tax break for retirees increased significantly. According to the NJPP, the changes to this exclusion include the limit(s) for married couples filing jointly to pay state income taxes will increase by $20,000 each year until 2020; a married person filing separately will increase by $10,000 each year until 2020; and individuals filing will increase $15,000 each year until 2020.
There are other minor laws that came into effect when the new year rang in, but the above-mentioned laws and changes to existing laws are ones that will affect Garden State residents in their majority.
If you have questions about any New Jersey law in particular or if you are in need of legal presentation at the start of the new, the Law Offices of Anthony Carbone is here to assist you. Contact our Firm today.