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Level 1
April 5, 2021
Question

IS NJ ACTIVE MILITARY WAGES TAXABLE IN NJ

  • April 5, 2021
  • 1 reply
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1 reply

Level 6
April 5, 2021

Yes. As a New Jersey resident, you are subject to tax on all your income, regardless of where it is earned, unless the income is specifically exempt from tax under New Jersey law. You must report your military pay and cost-of-living allowance as taxable income on your resident return. Mustering-out payments, subsistence and housing allowances, and U.S. military pension and survivor’s benefit payments are exempt.

New Jersey Income Tax is withheld from military pay of New Jersey residents. If you have changed your home of record (and domicile) from New Jersey to another state, or you satisfy the three conditions for nonresident status, your military pay is not subject to New Jersey Income Tax.

https://www.state.nj.us/treasury/taxation/military/requirements.shtml#:~:text=New%20Jersey%20Income%20Tax%20is,to%20New%20Jersey%20Income%20Tax.