New Jersey SCRA Benefits: State Civil Relief Act & Lease Law
Part of: The Complete Guide to the SCRA
New Jersey hosts Joint Base McGuire-Dix-Lakehurst, Picatinny Arsenal, and Naval Weapons Station Earle. It is one of the states that wrote its own civil-relief law, and it is a real one. The catch is on the tax side, and you should weigh both halves before you set your domicile.
Where New Jersey goes beyond federal law
| Protection | Federal SCRA | New Jersey |
|---|---|---|
| State civil-relief statute | n/a | ✓ N.J.S.A. 38:23C (stays, default judgment, leases) |
| Lease termination | 50 U.S.C. § 3955 | ✓ N.J.S.A. 38:23C-14 |
| Auto-lease cancellation | 50 U.S.C. § 3955 | ✓ N.J.S.A. 38:23C-15 |
| Tax on resident active-duty pay | Depends on state | ✕ Taxed (combat pay exempt) |
The state civil-relief act: a full toolkit
N.J.S.A. 38:23C, the New Jersey Soldiers’ and Sailors’ Civil Relief Act, mirrors the federal machinery in state court. It carries stays of proceedings (38:23C-8), default-judgment protection (38:23C-4), lease termination (38:23C-14), and auto-lease cancellation (38:23C-15). It reaches members of the organized militia and reserves. Use it in state court the same way you would use the federal SCRA in federal matters, and cite both.
The protections have teeth here. The federal Justice Department has enforced military housing rights in New Jersey, including a settlement with a provider that charged unlawful lease-termination fees at a joint base.
The tax reality
Here is the honest part. New Jersey taxes a resident service member’s active-duty pay, unlike Florida, Texas, or Pennsylvania’s out-of-state rule. Combat pay is exempt as of 2021, and a nonresident stationed in New Jersey owes New Jersey nothing on military pay. But if New Jersey is your domicile, your base pay is generally taxable, which makes the tax-state election a real decision.
The New Jersey checklist
- In state court, N.J.S.A. 38:23C is your tool: use it for stays and default-judgment defense.
- Lease or auto-lease exit: cite N.J.S.A. 38:23C-14 or 38:23C-15 with 50 U.S.C. § 3955.
- On your New Jersey return: exempt combat pay, and weigh your tax domicile carefully.
- Federal SCRA basics on top: the 6% cap, letters, foreclosure shields, and refund audits.
- For a dispute you cannot settle on paper, take it to your installation legal assistance office; the DOJ has enforced these rights in New Jersey before.
The law behind this: N.J.S.A. 38:23C
New Jersey Soldiers' and Sailors' Civil Relief Act: read the statute.
Frequently asked questions
Does New Jersey have its own SCRA?
Yes. The New Jersey Soldiers' and Sailors' Civil Relief Act (N.J.S.A. 38:23C), enacted in 1979, protects the civil and property rights of service members and members of the organized militia and reserves. It includes stays of proceedings (38:23C-8), default-judgment protection (38:23C-4), lease termination (38:23C-14), and auto-lease cancellation (38:23C-15). The federal SCRA applies on top.
How do I break a lease in New Jersey?
Use N.J.S.A. 38:23C-14, which lets a service member terminate a lease on entering service or receiving orders, alongside the federal 50 U.S.C. § 3955. Deliver written notice and a copy of your orders. The federal Justice Department has enforced these protections in New Jersey, including a settlement over unlawful lease-termination fees at a joint base.
Does New Jersey tax military pay?
For residents, generally yes. New Jersey taxes a resident service member's active-duty pay, which makes it different from no-tax states like Florida or Texas. Combat pay has been exempt since tax year 2021. A nonresident stationed in New Jersey is not taxed by New Jersey on military pay. Your domicile choice matters here.
First steps for a New Jersey service member?
Run the federal SCRA for debt. Use N.J.S.A. 38:23C for stays, default-judgment defense, and lease or auto-lease exits. Exempt combat pay on your New Jersey return, and weigh whether to keep New Jersey as your tax domicile. If it comes to a fight, legal assistance at Joint Base McGuire-Dix-Lakehurst or Picatinny works these claims at no charge, so bring your orders and the lease.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.