This bill proposes an increase in the minimum income thresholds that determine when individuals are required to file and pay New Jersey's gross income tax. Specifically, it amends N.J.S.54A:2-4 and N.J.S.54A:8-3.1 to raise the income limits for various filing statuses. For single taxpayers, estates, or trusts, the threshold will increase from $10,000 to $12,000 for taxable years beginning on or after January 1, 2026. For married couples filing jointly, the threshold will rise from $20,000 to $24,000 for the same tax year. Additionally, the bill maintains the existing thresholds for earlier tax years while updating the language to reflect these changes.

The bill aims to alleviate the tax burden on lower-income individuals and families by adjusting the income thresholds that have remained unchanged since 2001. By increasing these limits, the legislation seeks to ensure that more taxpayers are exempt from filing requirements and gross income tax obligations, thereby providing financial relief to those who may be struggling economically. The changes will take effect immediately upon enactment, with the new thresholds applying starting in the 2026 tax year.