New Jersey residents are about to see major changes to their federal tax bills in 2026, thanks to the passage of President Donald Trump’s “One Big Beautiful Bill Act” (OBBBA). The new legislation makes permanent several tax cuts originally passed in 2017, while also introducing new deductions and credits designed to provide relief for working families, seniors, and middle-income households.
While the average New Jersey taxpayer is projected to save about $3,700 annually beginning in 2026, the actual amount varies significantly depending on where you live. Wealthier counties with higher property values and household incomes, such as Morris, Somerset, and Hunterdon, are projected to see average tax cuts above $5,000 per taxpayer, while more rural or lower-income South Jersey counties such as Cumberland, Salem, and Atlantic are expected to see savings closer to $2,500 per taxpayer.
What’s Included in the 2026 Tax Cuts
The new law builds on the framework of the 2017 Tax Cuts and Jobs Act while expanding benefits for different groups of taxpayers. Among the major provisions:
- Deductions for tips and some overtime pay – A first-of-its-kind change that allows service industry workers and hourly employees to keep more of what they earn.
- Bigger standard deductions – Raising the baseline amount taxpayers can deduct, reducing taxable income for both individuals and families.
- Higher child tax credit – Designed to help working parents manage the costs of raising children.
- New $6,000 senior deduction – A targeted relief for retirees living on fixed incomes.
- Expanded SALT (state and local tax) deduction – Of particular importance in New Jersey, where property taxes are among the highest in the nation.
Together, these provisions are expected to deliver noticeable savings for most households, though the impact will depend on income level, family size, and county of residence.
County-by-County Breakdown
According to a tax impact assessment, here’s how much the average taxpayer in each New Jersey county stands to save annually starting in 2026:
- Atlantic County: $2,458
- Bergen County: $4,693
- Burlington County: $3,303
- Camden County: $2,902
- Cape May County: $3,328
- Cumberland County: $2,034
- Essex County: $3,740
- Gloucester County: $3,046
- Hudson County: $3,382
- Hunterdon County: $5,137
- Mercer County: $3,718
- Middlesex County: $3,369
- Monmouth County: $4,590
- Morris County: $5,239
- Ocean County: $3,251
- Passaic County: $2,486
- Salem County: $2,386
- Somerset County: $5,210
- Sussex County: $3,133
- Union County: $3,614
- Warren County: $2,888
What It Means for New Jersey Families
The projected savings highlight the economic diversity of New Jersey. In suburban and high-income counties like Morris, Somerset, and Hunterdon, larger tax cuts reflect higher earnings, higher property values, and greater exposure to SALT deductions. In contrast, South Jersey counties such as Cumberland, Salem, and Atlantic — where average household incomes are lower — will see smaller but still meaningful relief.
For many families, the combination of a higher child tax credit and expanded deductions will help offset everyday expenses like child care, groceries, and rising utility costs. Seniors will also see direct benefits, with the new $6,000 deduction aimed at easing the burden of living on retirement savings.
Looking Ahead
The “One Big Beautiful Bill Act” is complex, and the savings shown here are averages. Every household’s situation will depend on specific factors such as income, deductions, and family size. However, what is clear is that the tax landscape in New Jersey will shift in a significant way in 2026 — and for many, it could mean a lighter federal tax burden.
For ongoing coverage of New Jersey politics and policies shaping taxpayers, visit our Politics section.
Final Thoughts
With an average tax cut of nearly $3,700 per taxpayer, New Jersey is poised to see one of the more substantial impacts of the new law. While the benefits will vary widely from county to county, nearly every taxpayer across the state should see some relief.
Whether you live in the high-income suburbs of Morris County or the coastal communities of Atlantic County, the 2026 tax cuts are designed to deliver savings that will ripple through households, local economies, and communities across the Garden State.
