Legislation enacted in 2004 (P.L. 2004, c.40) increased the New Jersey gross income tax rates on income over $500,000. The increase was retroactive to January 1, 2004. Because of the increase in tax rates, new withholding rates were required.
Recent Legislation (P.L. 2009, c. 69) increases the New Jersey gross income tax rates for all taxpayers with gross income over $400,000. The increase applies to the entire 2009 tax year and new withholding rates are required effective October 1, 2009. On January 1, 2010, the withholding rate will revert back to the prior rate.
