New Jersey tax revenues jump 22.1% in September, but Treasury cautions against broader growth expectations

TRENTON, N.J. — New Jersey’s major tax revenues increased 22.1% in September compared with the same month last year, but state Treasury officials cautioned that much of the growth reflects a rebound in corporate tax collections rather than a broader trend in state revenue performance.

According to the New Jersey Department of the Treasury, September collections from major taxes totaled $6.337 billion, an increase of $1.147 billion over September 2025.

The department said the significant increase was largely driven by a recovery in Corporation Business Tax (CBT) payments, which had fallen sharply during the same period last year as taxpayers adjusted to changes in federal tax laws.

Treasury officials emphasized that the rebound was expected and should not be interpreted as an indication that similar revenue growth will continue in the coming months.

For the fiscal year to date, major tax collections totaled $10.169 billion, an increase of $1.617 billion, or 18.9%, compared with the same period last year.

Gross Income Tax

Gross Income Tax collections, which support New Jersey’s Property Tax Relief Fund, totaled $2.491 billion in September, an increase of $324.9 million, or 15%, from a year earlier.

All four income tax payment categories recorded increases, although refunds also rose.

Treasury officials noted that September benefited from an additional Wednesday withholding payment compared with the previous year. Without that extra payment, income tax collections would have increased by $103.6 million, or 4.3%.

Fiscal year-to-date Gross Income Tax collections totaled $4.156 billion, up $415.3 million, or 11.1%, from last year.

Sales and Use Tax

Sales and Use Tax collections reached $1.162 billion in September, an increase of $97.9 million, or 9.2%, compared with September 2025.

The Sales and Use Tax is New Jersey’s largest source of General Fund revenue. Because sales taxes are reported and paid with a one-month delay, September collections reflect consumer spending activity during August.

According to Treasury, revenue growth continues to be influenced by various economic activities, particularly in technology-oriented sectors.

Fiscal year-to-date sales tax collections totaled $2.490 billion, an increase of $263.8 million, or 11.9%.

Corporation Business Tax

Corporation Business Tax collections totaled $1.185 billion in September, an increase of $505.2 million, or 74.3%, compared with the same month last year.

The tax is the state’s second-largest source of General Fund revenue.

Treasury officials attributed the substantial increase to a rebound in estimated tax payments following an unusually sharp decline in September 2025, when businesses were adjusting to federal tax law changes.

Fiscal year-to-date corporate tax collections reached $1.435 billion, an increase of $646.4 million, or 81.9%, compared with the previous year.

Despite the significant increase, the department cautioned that the figures largely reflect a correction from last year’s unusually low collections.

Pass-Through Business Alternative Income Tax

Revenue from the Pass-Through Business Alternative Income Tax totaled $991.1 million in September, an increase of $110.6 million, or 12.6%, from a year earlier.

The department attributed the increase primarily to higher estimated payments and lower refunds.

Fiscal year-to-date collections totaled $1.044 billion, up $128.4 million, or 14%, compared with the same period last year.

Realty Transfer Fee

Realty Transfer Fee collections declined to $49.9 million in September, a decrease of $3 million, or 5.7%, from the previous year.

However, Treasury officials said the decline was affected by a timing issue involving late payments from one county during September 2025.

After adjusting for that irregularity, Realty Transfer Fee revenue would have increased by nearly 11% for the month.

Fiscal year-to-date collections totaled $110.9 million, an increase of $6.4 million, or 6.1%, from last year.

Graduated Percent Fee

Revenue from the Graduated Percent Fee totaled $52.2 million in September, an increase of $7.6 million, or 17%, compared with the previous year.

Fiscal year-to-date collections reached $120.6 million, an increase of $46.4 million, or 62.6%.

Treasury officials said the year-over-year comparison was affected by the delayed implementation of the fee at the beginning of fiscal year 2026 and substantial refund activity that reduced collections during the previous year.

Overall, the department said September’s revenue performance was positive but emphasized that the unusually large increase in corporate tax collections and differences in payment timing make the figures less reliable as an indicator of future revenue trends.