No Federal Taxes On Your First $75k? Cory Booker’S New Plan Could Impact Millions Of Nj Families

U.S. Senator Cory Booker of New Jersey has introduced the “Keep Your Pay Act,” a proposal that would eliminate federal income taxes on the first $75,000 of income for many households. The plan would dramatically increase the standard deduction and expand tax credits aimed at working families.

If passed, the proposal would allow most Americans to keep their first $75,000 tax-free, significantly reducing federal income taxes for middle-class households.

But here’s the New Jersey reality:

• The median household income in New Jersey is about $103,500, meaning half of households earn more and half earn less.

• Median family income in the state is around $127,000, reflecting households with multiple earners.

What that means in practice:
For many New Jersey families, especially a family of four, a $75,000 tax-free threshold would cover a large portion of their income — but still fall below the typical earnings needed to keep up with the state’s high cost of living.

In other words, the proposal could eliminate federal taxes on most of the income for lower- and middle-income households, but for many Jersey families earning above the state median, taxes would still apply to the remaining income.