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Bill

A 6021

Sets flat gross income tax rate at 5.9 percent tax for all taxable income over $37,500 or $75,000, depending on filing status; exempts taxpayers with less income from gross income tax.

2024-2025 Regular Session Introduced by Bob Auth and 11 co-sponsors

New Jersey bill replaces progressive income tax with flat 5.9% rate on income over $37,500/$75,000, exempting lower earners but potentially reducing state revenue significantly.

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee
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WeVote Research Nonpartisan
Bill Summary · A 6021

Legislative bill overview

Bill A 6021 proposes a flat income tax of 5.9% on New Jersey residents' taxable income exceeding $37,500 (single filers) or $75,000 (joint filers), while exempting lower-income taxpayers from the gross income tax entirely. This replaces New Jersey's current progressive tax system with a fixed rate across all higher income brackets.

Why is this important

Income tax structure directly affects state revenue and tax burden distribution across income levels. This change would fundamentally reshape New Jersey's tax system—currently one of the highest-taxed states—with significant implications for state funding of schools, infrastructure, and services, plus varying financial impacts depending on individual income levels.

Potential points of contention

  • Revenue impact uncertainty: A flat 5.9% rate may generate less total state revenue than the current progressive system (which taxes higher earners at higher rates), potentially requiring cuts to state programs or increases in other taxes
  • Regressive tax structure: Lower and middle-income earners above the threshold would pay a higher effective rate than under the current progressive system, while high earners would pay less, raising equity concerns
  • Fiscal feasibility: New Jersey would need detailed actuarial analysis showing how services currently funded by income tax would be maintained under reduced projected revenues

Compiled from official sources — confirm details with the bill’s official record.

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