Combat Zone Pay to No Longer Be Taxed in New Jersey

TRENTON – New Jersey will finally end the tax on bonus income of service members stationed in combat zones. After decades of being struck down in the legislature, ending the combat zone tax passed unanimously and was signed by Governor Phil Murphy on Monday.

“I’ve served multiple combat tours overseas. I’ve been there, gotten my paycheck and personally felt insulted for being taxed for my time in Iraq and Afghanistan. I’m glad none of our brave men and women have to feel that again,” said Assemblyman Ryan Peters (R-8).

Military combat zone pay is already excluded from federal income taxes. New Jersey was the last remaining state in the nation to tax this pay.

“The combat zone tax has been a big, grotesque stain on New Jersey for many years. It’s unfortunate that it took this long to join the rest of America in realizing that the government should not be taxing bonuses our military heroes earn while fighting overseas, but I’m relieved it is finally a thing of the past,” Peters continued.

“I’ve been fighting and advocating to get rid of this tax for the two-plus years I’ve been an assemblyman. I thank Governor Murphy for singing this into law and am proud that we were able to work across the aisle to do what’s best for our brave service members,” he said.