New Jersey’s budget for FY 2019 was signed by Governor Murphy on July 1, 2018. Of course, state budgets are very complex and include changes to tax law, new surcharges, among many others. A few of the highlights are as follows:
- Free community college for residents of a lower income
- Taxpayers with an income of $5 million and above will be subject to an income tax rate of 10.75 percent
- New taxes on tobacco and e-cigarettes
- An increased state property deduction cap from $10,000 to $15,000
- Additional funding for the New Jersey Transit
- Increased Earned Income Tax Credit
- The addition of a Child and Dependent Care Tax Credit
- Additional funding for the Homestead property tax relief program
New Jersey has also added a new corporate business tax surcharge of 2.5 percent for the next two years. Years three and four will result in a 1.5 percent surcharge but only for corporations that are earning upwards of $1 million.
Of course, it is important for the taxpayers of New Jersey to have an understanding of what changes are being made for the upcoming year. If you have questions about how these changes may impact your finances, it is important to discuss with an experienced financial consultant that can assess your situation. Werdann Devito LLC is here to help.
To learn more about New Jersey’s budget for the next fiscal year, click here.
Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.