New Jersey’s $58.8B Budget Includes Some Tax Increases

 – July 1, 2025
New Jersey’s $58.8B Budget Includes Some Tax Increases

Late on June 30, Governor Murphy signed New Jersey’s FY26 budget. At $58.78 billion, it is the state’s largest-ever budget. Here’s a summary of some of the main budget items:

  • 4% increase in annual spending
  • $1.5 billion structural spending gap
  • Increase in realty transfer fee for residential and commercial properties: 2% for sales between $2 million and $2.5 million and .05% for every additional $500,000; capped at 3.5%; payable by the seller
  • Increase in tax for online gambling and sports betting to 19.75%
  • Increase in tax for cigarettes from $2.70 to $3 per pack and liquid nicotine from 10 cents per fluid milliliter to 30 cents
  • New exemption for small business investment and reforms to the Angel Investor Tax Credit
  • Nearly $4.3 billion in direct property tax relief, including $2.4 million for the ANCHOR program and $239 million for the Senior Freeze program
  • $600 million for StayNJ, which is expected to launch for the 2025 tax season and will reimburse eligible seniors for up to 50% of their property tax bills
  • Nearly $2 billion for infrastructure: state and local highway and bridge projects and NJ TRANSIT fleet modernization
  • $7.2 billion full payment to the public workers’ pension system
  • $12.1 billion for K-12 school aid

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