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December 31, 2016

Tax cuts for New Jersey residents to begin in the new year

The new year will also mean tax cuts for many residents throughout New Jersey, some that start as early as Sunday.

Gov. Chris Christe along with Democratic leaders reached an agreement for the state's transportation fund earlier this year that resulted in the cuts that will help retirees, veterans and the working poor, reported.

The state's sales tax will go down by an eighth of a percentage point from its current 7 percent Sunday, while its estate tax threshold will jump from $675,000 to $2 million Sunday, according to the news website.

Veterans will see a big change headed into the weekend, too. Those honorably discharged will be able to claim an annual tax exemption of $3,000.

Tax cuts that'll impact retirees will take the longest to phase in, Newsworks reported. Retirement-income exclusions will double Sunday to $40,000 for those filing jointly with their spouse or $30,000 for those filing as "single," according to the website.

The state's earned income tax credit will also jump from 30 percent to 35 percent in the new year, reported.

New Jersey residents have already begun to feel the changes that come along with the renewed Transportation Trust Fund, including the 23-cent gas tax. The additional cuts will total more than $1 billion, NJ Spotlight reported.

Read more about the cuts here