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New Jersey
Military Benefits

A plain-English guide to every major New Jersey law and federal protection that affects servicemembers, veterans, and military families stationed in or relocating to New Jersey.

Income tax
Military retirement pay fully exempt from state income tax
Military wages
Resident military wages are taxable; combat pay is exempt
Property tax
Veterans property tax deduction ($250 annually, with enhanced exemptions for 100% P&T)
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Gold Star family benefits
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The rules families feel first. Jump to the benefit, then who to call.

Military Pay and State Income TaxNew Jersey taxes military wages of residents. It does not tax U.S. military pensions or survivor benefit payments.Military Active Duty PayProperty Tax Exemptions and DiscountsNew Jersey offers a $250 annual property tax deduction for a qualifying veteran, and a full exemption on the principal residence for a veteran who is 100% permanently and totally disabled.100% Disabled VeteransVehicle Registration and Driver LicenseSCRA protects active duty servicemembers from being required to register vehicles in New Jersey while stationed here on orders. New Jersey also offers veteran-specific license plates and registration benefits for disabled veterans.Out-of-State Vehicle RegistrationMilitary Spouse Employment and LicensingNew Jersey has enacted military spouse licensing reciprocity laws requiring expedited license transfers for qualified professionals. Military spouses may also maintain their home state domicile and vehicle registration regardless of time spent in New Jersey.New Jersey Military Spouse License Reciprocity

On this page

  1. 01Military Pay and State Income Tax
  2. 02Property Tax Exemptions and Discounts
  3. 03Vehicle Registration and Driver License
  4. 04Military Spouse Employment and Licensing
  5. 05SCRA
  6. 06Education Benefits in New Jersey
  7. 07Voting and Residency Rights
  8. 08Official sources
  9. 09Contacts
  10. 10School liaisons
  11. 11Base guides

Not legal advice. Laws change. Verify current rules with your installation JAG office, New Jersey state tax authority, or a licensed New Jersey attorney before making financial or legal decisions based on this guide. Last reviewed October 2026.

01 · Military Pay and State Income Tax

Military Pay and State Income Tax

New Jersey taxes military wages of residents. It does not tax U.S. military pensions or survivor benefit payments.

Military Active Duty Pay

New Jersey taxes military pay of residents, including pay earned while stationed outside the state, unless you have changed your domicile. Mustering-out payments, subsistence allowances, and housing allowances are not taxable. For tax year 2021 and after, combat-zone pay excluded from federal income is also excluded from New Jersey income under P.L. 2020, c. 93. Nonresidents are not taxed on military compensation. Proximity to New York City and Philadelphia creates significant employment opportunities for military spouses and career changers leaving service.

Conditions Apply

VA Disability Compensation

VA disability compensation is fully exempt from New Jersey state income tax. This is a federal-level exemption honored automatically. This applies to all ratings including partial disability compensation and Combat-Related Special Compensation (CRSC).

Military Spouse Income

Under the Veterans Benefits and Transition Act of 2018, military spouses who maintain domicile in another state do not owe New Jersey income tax on wages earned in New Jersey while accompanying their servicemember on military orders. This applies regardless of how long the spouse has lived in New Jersey.

Military Pensions and Survivor Benefit Plan Payments

New Jersey does not tax U.S. military pensions or survivor benefit payments, including SBP annuities paid by the Defense Finance and Accounting Service, regardless of age or disability. Do not report those payments on Form NJ-1040. A federal civil-service pension is taxable even when the annuity includes credit for military service.

Do this next. Do not report a U.S. military pension or survivor benefit on Form NJ-1040. Report resident military wages as wages. Contact the NJ Division of Taxation at (800) 323-4400, or read the military page at nj.gov/treasury/taxation/military/taxinformation.shtml, before you file.

02 · Property Tax Exemptions and Discounts

Property Tax Exemptions and Discounts

New Jersey offers a $250 annual property tax deduction for a qualifying veteran, and a full exemption on the principal residence for a veteran who is 100% permanently and totally disabled.

100% Disabled Veterans

A veteran who is 100% permanently and totally disabled from active-duty service can receive a full property tax exemption on the principal residence. File Form D.V.S.S.E. with your local tax assessor, with a VA certification of the 100% permanent and total disability, a DD-214, and proof you own and occupy the home. A separate $250 annual deduction is available to an honorably discharged veteran with active-duty service. File Form V.S.S. with the local assessor for that deduction. Reservists and National Guard members need active-duty service to qualify for the $250 deduction.

Surviving Spouse Protection

The surviving spouse of a 100% P&T disabled veteran in New Jersey retains the full property tax exemption as long as they remain unmarried and continue to occupy the property as their primary residence. The exemption passes automatically without the spouse needing to re-qualify with a new VA rating.

Active Duty Vehicle Personal Property Tax

Active duty servicemembers stationed in New Jersey on military orders are not required to pay New Jersey personal property taxes on vehicles registered in their home state. SCRA protects home-state registration from challenge. If you register a vehicle in New Jersey, local personal property tax rules apply.

Conditions Apply

Do this next. Your local assessor takes the application. The Division of Taxation answers rule questions at (609) 292-7974. For help documenting veteran status, call the NJ Department of Military and Veterans Affairs at (609) 530-6958. If an application is denied, appeal to the County Board of Taxation.

03 · Vehicle Registration and Driver License

Vehicle Registration and Driver License

SCRA protects active duty servicemembers from being required to register vehicles in New Jersey while stationed here on orders. New Jersey also offers veteran-specific license plates and registration benefits for disabled veterans.

Out-of-State Vehicle Registration

Active duty servicemembers are not required to register their vehicles in New Jersey while stationed here under SCRA. You may keep home-state plates and registration. New Jersey cannot require registration change based solely on military orders. Keep a copy of current orders in your vehicle at all times in case of a traffic stop.

100% Disabled Veterans

Veterans with a 100% P&T disability rating may receive a vehicle registration fee waiver or significant reduction in New Jersey. Free specialty disabled veteran license plates are also available. Contact NJ MVC Veterans Services to verify current eligibility and apply.

Driver License

A New Jersey driver license for a servicemember or dependent stationed outside the state does not expire during active duty. The license remains valid for 90 days after separation or return to New Jersey. When you PCS back, you will have at least 60 days to renew before enforcement.

Military Spouse Vehicle and License

Military spouses may maintain their home state vehicle registration and driver license while residing in New Jersey due to military orders. They are not required to obtain a New Jersey license or plates. This applies regardless of how long they have lived in the state.

Do this next. SCRA vehicle protections apply at traffic stops. Carry a printed copy of current orders in your vehicle. If law enforcement questions your out-of-state plates, calmly explain your active duty status and provide orders. If you encounter issues, contact your installation JAG office.

04 · Military Spouse Employment and Licensing

Military Spouse Employment and Licensing

New Jersey has enacted military spouse licensing reciprocity laws requiring expedited license transfers for qualified professionals. Military spouses may also maintain their home state domicile and vehicle registration regardless of time spent in New Jersey.

New Jersey Military Spouse License Reciprocity

New Jersey has enacted military spouse licensing reciprocity under NJSA 45:1-14.1. Licensing boards must process military spouse applications on an expedited basis. Military spouses may maintain their home state vehicle registration and driver's license under SCRA without penalty from the NJ Motor Vehicle Commission.

Unemployment Compensation for Spouses Following PCS

New Jersey law allows a military spouse who voluntarily leaves employment to accompany their servicemember on a PCS move to collect unemployment benefits. They are not considered to have voluntarily quit without good cause. The spouse must have worked in New Jersey prior to the PCS move.

Federal Hiring Preference for Military Spouses

Military spouses of active duty servicemembers are eligible for non-competitive appointment to federal civil service positions under Executive Order 13473. This applies at any federal agency with a presence near New Jersey installations, including DoD civilians, VA, and other federal employers.

Remote Work and New Jersey Income Tax

A military spouse who maintains domicile in another state and works remotely for an out-of-state employer while living in New Jersey on military orders may be exempt from New Jersey income tax on those remote wages. New Jersey-source income may still be taxable. Consult a military-aware CPA for your specific situation.

Conditions Apply

Do this next. Contact your installation Family Support Center for a list of New Jersey licensing boards with military spouse reciprocity processes. Each board has its own form and documentation requirements. Submit applications with your spouse's military orders, your out-of-state license copy, and verification of good standing from the prior state.

05 · SCRA

SCRA, Federal Protections That Apply in New Jersey

New Jersey courts and landlords are required to honor all federal SCRA protections. Your installation JAG office can provide free legal assistance for any SCRA issue including lease terminations, interest rate caps, and foreclosure stays.

Lease Termination

You can terminate any New Jersey residential lease with 30 days written notice upon receiving PCS orders or a deployment of 90 or more days. Deliver written notice and a copy of orders to the landlord. Termination is effective 30 days after the next rent due date. New Jersey landlords cannot charge early termination fees to servicemembers exercising SCRA rights.

6% Interest Rate Cap on Pre-Service Debt

Any debt taken on before entering active duty, including mortgages, car loans, credit cards, and student loans, must be reduced to 6% interest upon written request. Submit written notice with a copy of orders to each lender. The cap applies retroactively, excess interest above 6% is forgiven, not deferred.

Foreclosure Protection

New Jersey courts cannot foreclose on a servicemember's primary residence during active duty without a court order. The protection extends for 1 year after separation. Contact your installation JAG immediately if you receive any foreclosure notice while on active duty.

Civil Court Stay of Proceedings

New Jersey courts must grant at least a 90-day stay of civil proceedings when a servicemember cannot appear due to military duties. Courts cannot enter a default judgment against an active duty servicemember without a hearing and an attorney appointed to represent their interests.

Do this next. Every New Jersey installation has a JAG Legal Assistance Office. Contact information is in the Key Contacts section below. SCRA violations should be reported to JAG immediately. Landlords and lenders familiar with military areas are generally aware of the law, but violations do occur.

06 · Education Benefits in New Jersey

Education Benefits in New Jersey

New Jersey provides in-state tuition for active duty families stationed in the state. Multiple Yellow Ribbon schools operate in New Jersey, covering tuition and fees beyond the GI Bill cap for eligible veterans at participating private and out-of-state schools.

In-State Tuition for Active Duty Families

Federal law and New Jersey policy grant immediate in-state tuition eligibility to active duty servicemembers stationed in New Jersey, their spouses, and dependents. No 12-month waiting period is required. This applies to all New Jersey public colleges and universities.

Post-9/11 GI Bill and Yellow Ribbon Schools

New Jersey has multiple Yellow Ribbon-participating schools that cover tuition and fees beyond the GI Bill state cap at no additional cost to the veteran. For veterans with 100% GI Bill eligibility, Yellow Ribbon schools eliminate out-of-pocket tuition entirely. Verify current participation at benefits.va.gov/GIBILL before enrolling.

New Jersey National Guard Education Assistance

New Jersey National Guard members may receive state tuition assistance supplementing federal MGIB-SR benefits. The program can provide substantial tuition coverage at New Jersey public schools. Contact the New Jersey National Guard Education Office for current benefit amounts and eligibility.

In-State Tuition Preserved After PCS Out of New Jersey

Dependent children who establish domicile in New Jersey and begin enrollment at a New Jersey public university do not automatically lose in-state tuition eligibility if their active duty parent PCSes out of state, provided they maintain continuous enrollment.

Conditions Apply

Do this next. Each New Jersey public university has a Veterans Services Office with a School Certifying Official (SCO). Contact the SCO as soon as you enroll to initiate GI Bill certification. Processing can take 4 to 8 weeks; plan accordingly for initial enrollment periods.

07 · Voting and Residency Rights

Voting and Residency Rights

New Jersey must honor your right to maintain home-state domicile and vote by absentee ballot. Your installation Voting Assistance Officer can help you register and request a ballot under UOCAVA.

Maintain Home State Domicile

Being stationed in New Jersey does not change your legal domicile. You may continue to vote in your home state via absentee ballot under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA). Submit a Federal Post Card Application (FPCA) at FVAP.gov. Your installation Voting Assistance Officer (VAO) can assist.

Establish New Jersey Domicile Voluntarily

If you want to vote in New Jersey and claim it as your home state, register at your county election office. Consider the financial implications of switching domicile, including New Jersey income tax rates and property tax rules, compared to your current home state.

Conditions Apply

Military Spouse Independent Domicile

Military spouses may independently maintain domicile in any state they choose under VBTA 2018. It does not have to match the servicemember's domicile. New Jersey cannot force a spouse to establish New Jersey domicile based on their physical presence in the state.

Absentee Voting While Deployed

New Jersey accepts the Federal Post Card Application (FPCA) as a combined registration and absentee ballot request. UOCAVA voters may request electronic ballot transmission. Submit your FPCA at least 45 days before any election to ensure ballot delivery and return.

Do this next. Your installation Voting Assistance Officer (VAO) is the best resource for domicile and absentee voting questions. Contact your unit's chain of command to locate your VAO. The Federal Voting Assistance Program at FVAP.gov provides state-specific absentee ballot request forms and deadlines.

Call before it is urgent

New Jersey key contacts

Tap the number. These desks handle tax, licensing, benefits, and JAG.

NJ Division of Veterans ServicesState benefits, claims, appeals(888) 865-8387JB McGuire-Dix-Lakehurst JAGSCRA, legal assistance, wills(609) 754-2258NJ Division of TaxationMilitary retirement income exclusion(800) 323-4400NJ MVC Veterans ServicesVeteran license plates, registration(609) 292-6500NJ National Guard EducationGuard tuition assistance(609) 530-6900NJ DVS Emergency FundVeterans emergency financial assistance(888) 865-8387

State Legislature

Veterans and Servicemember Advocacy

Legislative Committee
Senate Military and Veterans Affairs Committee
This committee oversees legislation affecting active duty servicemembers, veterans, and military families in New Jersey. It handles bills on veterans benefits, military employment protections, property tax exemptions, and National Guard policy.
Website: njleg.state.nj.us
How to Engage
Contact Your State Representative
Military families can contact their state legislators to weigh in on veteran and servicemember legislation. Find your New Jersey representative using your home address at njleg.state.nj.us. Committee hearings on veterans bills are typically open to the public and remote testimony is often accepted.

Research-Ranked

Military-Friendly Colleges in New Jersey

Rankings based on Military Times Best for Vets, GI Jobs Military Friendly Schools, and Victory Media research methodology. Yellow Ribbon participation verified annually.

Rowan University
Military Times Best for Vets
Yellow Ribbon, South Jersey near JB McGuire-Dix-Lakehurst
New Jersey Institute of Technology
GI Jobs Military Friendly
Yellow Ribbon, strong STEM programs, Newark
Rutgers University
Military Friendly
Yellow Ribbon participant, veteran services, multiple campuses

Rankings and program details change annually. Verify current Yellow Ribbon participation and benefit amounts at benefits.va.gov/GIBILL before enrolling.

Free for military families

School liaison officers in New Jersey

Every New Jersey military installation has a School Liaison Officer on staff, free of charge. Call before orders drop to get ahead of enrollment deadlines.

JB McGuire-Dix-Lakehurst

DSN
312-754-2258

Keep going

New Jersey housing and schools

Base guides, BAH, and agents who already know this state.

NJ BAH RatesCalculate your housing allowance for New Jersey installationsOpenCompare All StatesSee how New Jersey compares to other states for military familiesOpenPCS PlannerPlan your move to New Jersey with our free military PCS toolOpenCareer TransitionCivilian career paths for veterans separating in or near New JerseyOpen

Official sources

Government pages for this guide. Confirm the figure for the year you are filing or the orders you are executing.

PCSing to New Jersey

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Use our free PCS Planner to get ahead of your move to New Jersey. BAH rates, base guides, school info, and housing intel, all in one place, free for military families.

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