Gov. Murphy signs law exempting combat pay from NJ income tax

Gov. Phil Murphy has signed bipartisan legislation exempting combat pay earned by members of the military from the state income tax.
Federal law already exempts combat pay from income tax, but the New Jersey law means pay that residents earn while in combat zones won’t be subject to the state’s income tax as well.
Murphy signed the bill Monday during a Facebook Live session with Republican Sen. Michael Testa and Democratic Assemblywoman Annette Quijano. Both lawmakers sponsored the legislation, which passed unanimously in both chambers earlier this month.
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