31 Mar How much pension exclusion do I get if I earn more than $100K?

Q. You’ve reported that there is a partial suspension exclusion for incomes between $100,000 and $150,000. What are the percentages?
— Taxpayer

A. New Jersey allows taxpayers aged 62 or older to exclude pension income from taxation if their income was at or below a certain amount.

When New Jersey first introduced the pension exclusion, it had a hard $100,000 of income cutoff.

If you earned $1 over, you would lose the exclusion entirely.

On June 29, 2021, Gov. Phil Murphy signed a law that provides a limited phase-out of the exclusion for taxpayers with income between $100,000 and $150,000 starting in 2021 and after.

So now, pension income is excluded if your income was $100,000 or below

If you have income of $100,001 to $125,000, you can exclude 50% of the pension income. If you earn $125,001 to $150,000, you can exclude 25% of the amount.

Hope you get some savings when you file your return!

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This story was originally published in March 2025.

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