Bill
Bill > S1615
NJ S1615
NJ S1615Excludes all New Jersey Lottery winnings from gross income tax and eliminates related withholding requirements.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill provides that all New Jersey Lottery winnings are excluded from the gross income tax and removes withholding requirements for New Jersey Lottery winnings that exceed $10,000 in value. Under current law, New Jersey Lottery winnings in excess of $10,000 are taxable under the gross income tax, and the New Jersey State Lottery is required to withhold a percentage of these prize winnings for gross income tax purposes. Currently, the Director of the Division of Taxation in the Department of the Treasury determines the withholding rate. This bill excludes New Jersey Lottery winnings in excess of $10,000 from gross income. Accordingly, all winnings from the New Jersey Lottery would be excluded from the gross income tax. As part of this exclusion, the bill also removes the New Jersey State Lottery's authority to withhold a percentage of such winnings for gross income tax purposes.
AI Summary
This bill makes New Jersey Lottery winnings entirely exempt from the state's gross income tax, meaning lottery winners will no longer have to pay state income tax on their prizes. Previously, winnings over $10,000 were taxable, and the New Jersey State Lottery was required to withhold a portion of these larger prizes for tax purposes. This bill removes that withholding requirement entirely, so the lottery will no longer deduct any amount from prize winnings for state income tax. The changes apply to taxable years starting January 1st after the bill is enacted.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1615 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1615_I1.HTM |
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