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New Jersey collected $3.194 billion in major taxes in August, up $353.5 million, or 12.4%, from August 2025, according to the state Department of Treasury’s latest revenue report. Two months into the fiscal year, collections stand at $3.832 billion, running 14% ahead of the same period a year ago.
The double-digit jump is real, but it comes with a caveat the state itself stresses: the first two months are the year’s smallest, and September – when quarterly estimated payments come due – typically brings in more than July and August combined. Treasury projects full-year revenue growth of just 3.8%, a reminder that two strong months don’t set the year’s pace.
Why collections rose
The gains were broad. The sales tax, the state’s largest General Fund source, brought in $1.328 billion, up 14.3% – though because of a one-month reporting lag, that figure reflects consumer spending back in July. The gross income tax, drawn from paychecks, rose 8.5% to $1.365 billion, driven by higher employer withholding and estimated payments and lower refunds — a signal of steady wages and employment.
Two areas stand out.
Corporation Business Tax collections swung from a net negative in August 2025 to positive territory this year, and are up 129.5% for the fiscal year to date, a change Treasury attributes mainly to sharply lower refunds rather than a surge in business activity.
And the state’s real estate levies climbed fast: realty transfer fees rose 18.2% on strong home sales and high prices, while the fee on property sales above $1 million more than doubled, up 131.5%. Part of that spike is a base effect — last year’s high-end fee was held down by a delayed rollout and refunds tied to the 2025 overhaul of the levy.
Where it goes
Income tax revenue is constitutionally dedicated to the Property Tax Relief Fund, which makes the 8.5% rise directly relevant to homeowners. Governor Mikie Sherrill’s $60.7 billion FY2027 budget sets aside record property tax relief of more than $4.1 billion which includes:
- $2.186 billion for ANCHOR
- $756 million for Stay NJ
- $345 million for Senior Freeze
The rest of the state’s collections flow into the General Fund, which underwrites the bulk of the budget: more than $24 billion in school and municipal aid, roughly $7.6 billion in public-worker health benefits, and a full $7.3 billion pension payment. The budget also holds a surplus above $6 billion and cuts the structural deficit to $1.35 billion.
A few things to note for New Jersey readers. The housing numbers suggest a market still running hot at the top end, even as affordability dominates state politics. Casino revenue tells a mixed story — up 13.9% for the month but down 9.7% for the fiscal year so far, a soft spot for Atlantic City. And the corporate picture is worth a second look: this year’s business-tax gains lean heavily on smaller refunds, not booming profits, so the strength may not hold. September’s numbers will say far more than August’s could.
Sources
- New Jersey Department of the Treasury, Monthly Revenue Report — August, Fiscal Year 2027 (cash collections snapshot). nj.gov/treasury
- New Jersey Department of the Treasury / Office of the Governor, “Governor Sherrill Signs FY 2027 Appropriations Act,” June 30, 2026.
- New Jersey League of Municipalities, SFY27 Budget in Brief.
