New Jersey Military and Veterans Benefits
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Summary of New Jersey Military and Veterans Benefits: The State of New Jersey offers special benefits for its military Service members and Veterans including Income Tax Exemptions on retired military pay and property tax, State Employment Preferences, Education and Tuition Assistance, Vehicle Tags, New Jersey Distinguished Military Medals, Burial benefits, Free State Park Admission, Free Private Beach Facilities, as well as Hunting and Fishing License privileges. Eligibility for some benefits may depend on residency, military component and Veteran disability status.
New Jersey Military and Veterans State Benefit Highlights and Eligibility
New Jersey Retired Military Pay Tax Exemption: U.S. military pensions are exempt from New Jersey Income Tax
New Jersey Taxes on Military Disability Retired Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the Armed Forces should not be included in taxable income if any of the following conditions apply:
You were entitled to receive a disability payment before September 25, 1975;
You were a member of the military (active or reserves) or were under a binding written commitment to become a member on September 24, 1975;
You receive disability payments for a combat-related injury. This is a personal injury or sickness that:
Resulted directly from armed conflict,
Took place while you were engaged in extra-hazardous service,
Took place under conditions simulating, including training exercises such as maneuvers, or
Was caused by an instrumentality of war.
You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it (the exclusion under this condition equals the amount you would be entitled to from the VA).
New Jersey Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation: Dependency and Indemnity Compensation (DIC) is a tax-free monetary benefit paid to eligible survivors of military Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-related injury or disease.
New Jersey Taxes on Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP): Survivor’s benefit payments are exempt from New Jersey Income Tax.
New Jersey Veteran Income Tax Exemption: Veterans are eligible for a $3,000 exemption on your Income Tax return if you are a military Veteran who was honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States on or any time before the last day of the tax year. Your Spouse (or civil union partner) is also eligible for an exemption if he/she is a Veteran who was honorably discharged or released under honorable circumstances and you are filing a joint return. This exemption is in addition to any other exemptions you are entitled to claim and is available on both the resident and nonresident returns. You cannot claim this exemption for a domestic partner or for your dependents.
A taxpayer whose Spouse died during the tax year can claim the deceased Spouse’s Veteran exemption if:
They file a joint New Jersey tax return; and
The Spouse did not remarry by December 31 of the tax year or were divorced/legally separated from the Spouse on the date of death.
The taxpayer (Surviving Spouse) may need to provide proof of eligibility.
Note: The Surviving Spouse taxpayer will not be able to claim the Veterans exemption for the deceased Spouse in any subsequent year.
New Jersey Disabled Veterans Property Tax Exemption: Certain totally and permanently disabled war Veterans or disabled Veterans who served in peacekeeping missions and operations may be eligible for exemption from real property taxes on their principal residence and the lot or curtilage on which that residence is situated and that is necessary for its fair enjoyment. The exemption also is available to Surviving Spouses/domestic partners. The Surviving Spouses/domestic partners of servicepersons who died on wartime active duty also may be eligible.
To qualify for a real property tax exemption as a Veteran, you must be honorably discharged with active wartime service or service in peacekeeping missions or operations in the U.S. Armed Forces and be certified by the U.S. Department of Veterans Affairs as having wartime service connected total or 100% permanent disability. You must be the full owner of and a permanent resident in the residence for which exemption is claimed and a legal or domiciliary resident of New Jersey. If you are a Surviving Spouse/domestic partner of a disabled Veteran who met all of the eligibility requirements, you must not have remarried or entered into a new civil union or a new registered domestic partnership, you must be a New Jersey resident, and you must be the owner-occupant of the claimed residence.
To apply for the disabled Veteran’s exemption, contact your local tax assessor.
New Jersey County Boards of Taxation Directory
New Jersey Veteran Property Tax Deduction: New Jersey resident Veterans honorably discharged with active wartime service or service in peacekeeping missions or operations in the U.S. Armed Forces may be eligible for an annual deduction of $250 from property taxes due on any property they own. The deduction also is available to Surviving Spouses/domestic partners. The Surviving Spouse/domestic partner of a Service member who died on wartime active duty also may be eligible. There are no income limits with respect to the Veteran’s deduction.
If both Spouses/domestic partners are Veterans, each can claim a deduction. A Veteran who is the Surviving Spouse/domestic partner of a Veteran can claim a deduction for each status. A taxpayer can claim both a Veteran’s deduction and a senior/disabled/survivor real property tax deduction in the same year in addition to any of the State’s other property tax relief program benefits provided by law.
To apply for the Veteran’s deduction, contact your local tax assessor or collector.
New Jersey County Boards of Taxation Directory