New Jersey Democratic Gov. Phil Murphy (D) on Monday signed bipartisan legislation exempting combat pay earned by members of the military from the state income tax, the Associated Press reported. 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. The measure defines a combat zone as any area the president designates as such in an executive order. Combat zone pay is an additional payment beyond a military member’s regular salary.
