TRENTON, N.J. — New Jersey’s major tax revenues grew 5.4 percent in October even as Corporation Business Tax collections continued to lag, the state Department of the Treasury reported this week.
Total collections for the month reached $3.189 billion, an increase of $164.7 million over October 2024. Revenue growth was driven primarily by the Sales and Use Tax and the Gross Income Tax. Fiscal year-to-date major revenues now total $11.667 billion, up 3.8 percent from last year and above the 3.3 percent growth rate certified in the FY2026 Appropriations Act.
Gross Income Tax collections, which support the Property Tax Relief Fund, rose 4.8 percent to $1.401 billion. Treasury officials said the boost stemmed from strong employer withholding and increased final payments, partially offset by higher refunds. Year-to-date GIT collections total $5.142 billion, up 10.6 percent.
Sales and Use Tax revenue — the state’s largest General Fund source — totaled $1.418 billion in October, an increase of 9.3 percent. Year-to-date revenue of $3.644 billion is up 5.5 percent, aided by the full imposition of sales tax on zero-emission vehicle purchases in the first quarter.
Corporation Business Tax revenue, however, fell sharply. CBT collections came in at negative $61.8 million for the month, a $126.7 million decline from last October. Year-to-date collections of $727.1 million are down 42.8 percent, with Treasury attributing the drop to higher refunds — many tied to tax periods before 2024 — and a steep decline in estimated payments.
Pass-Through Business Alternative Income Tax collections totaled $38.8 million, up 1,093 percent from last year due to stronger estimated payments and fewer refunds. Fiscal year-to-date PTBAIT revenue is up 17.4 percent at $954.6 million.
Petroleum Products Gross Receipts Tax revenue rose 9.9 percent to $138 million in October and is up 7.7 percent year-to-date, despite a lower tax rate at the start of FY2025.
Casino revenue increased 29.2 percent to $72.5 million, supported by the growth of internet gaming and sports wagering. Revenue is expected to continue rising following the July 1 implementation of higher gaming and sports betting taxes under P.L.2025, c.66. Year-to-date casino revenue is up 38.9 percent at $243.4 million.
Realty Transfer Fee collections reached $44.6 million in October, up 6.6 percent. Year-to-date revenue totals $149.1 million, a 13.1 percent increase. Treasury noted that New Jersey’s housing inventory has expanded for five consecutive months, a trend that could support additional home sales.
Treasury officials said overall revenue performance remains solid despite ongoing volatility in CBT receipts.
