TRENTON, NJ – A new proposal in the New Jersey Legislature seeks to provide expanded financial relief to veterans by doubling their state income tax deduction from $6,000 to $12,000.
The Democrat party now controls both the New Jersey Assembly and Senate, so Amato is at their mercy to see if this bill can get to the governor’s desk before the next tax cycle.
Senate Bill 3273, sponsored by Senator Carmen F. Amato Jr., was introduced in the 2026–2027 legislative session to amend New Jersey’s gross income tax law. The measure aims to recognize and support military veterans by significantly increasing the deduction they can claim on their state income taxes, effectively reducing taxable income for those who have served in the U.S. Armed Forces.
Under current law, veterans are entitled to a $6,000 deduction from their gross income. The proposed legislation would raise that amount to $12,000, providing additional tax relief beginning in the next applicable tax year after passage. The deduction is available to any New Jersey resident who was honorably discharged or released under honorable circumstances from active duty in the military.
Senator Amato said the bill is intended to acknowledge veterans’ sacrifices and ease financial pressures as the cost of living continues to rise across the state. Supporters argue that increasing the deduction is a modest but meaningful step toward improving veterans’ economic stability and honoring their service.
Fiscal analysts expect the measure to have a moderate impact on state revenue but note that the cost would be offset by the social and economic benefits of supporting veterans and their families.
- Senate Bill 3273 doubles the New Jersey gross income tax deduction for veterans from $6,000 to $12,000.
- The benefit applies to veterans honorably discharged from active military service.
- Lawmakers say the change provides financial relief and recognition for veterans’ contributions.
If approved, the increased deduction would take effect immediately and apply to taxable years beginning after the bill’s enactment. The proposal now awaits committee assignment and consideration in the New Jersey Senate.