New Jersey Tax Division Issues Individual Income Tax Information on New Federal Deductions

The New Jersey Division of Taxation issued individual income tax information on the new federal income tax deductions for senior citizens, overtime, and tips for tax years 2025 through 2028 under the One Big Beautiful Bill Act (OBBBA). The Division stated that the New Jersey Gross Income Tax (GIT) has defined categories of income and deductions and is not computed based on federal adjusted gross income. Therefore, the federal deductions do not affect a taxpayer’s New Jersey Individual Income Tax return. [N.J. Div. of Tax’n, Latest News and Updates, 12/01/25]