TRENTON, N.J. — New Jersey’s major tax revenues declined slightly in February compared with the same month last year, largely due to the early processing of income tax refunds, according to the state Department of the Treasury.
Treasury officials reported that February collections for major taxes totaled $3.091 billion, a decrease of $89.4 million, or 2.8%, from February 2025. The month is typically considered a minor revenue period because there are no major tax payment deadlines.
The decline was primarily driven by lower collections from the Gross Income Tax, which were affected by the state issuing a large portion of Tax Year 2025 refunds earlier than usual.
February Gross Income Tax collections totaled $1.253 billion, down $201 million, or 13.8%, compared with the same month last year. Treasury officials said the drop occurred because the state began issuing refunds in late February rather than the typical early March timeframe, which temporarily reduced net collections for the month.
Despite the monthly decrease, fiscal year-to-date Gross Income Tax collections total $12.469 billion, up $818.9 million, or 7%, from the same period last year.
Overall, fiscal year-to-date revenues remain higher than last year, with major tax collections reaching $27.991 billion, an increase of $879.5 million, or 3.2%, according to the report.
The Sales and Use Tax, the state’s largest General Fund revenue source, totaled $974.9 million in February, an increase of $21.1 million, or 2.2%, from the previous year. Fiscal year-to-date collections for the tax stand at $8.197 billion, up $234.8 million, or 2.9%, year over year.
The Corporation Business Tax, the state’s second-largest General Fund revenue source, recorded negative $22.6 million in February, reflecting a decline of $43.6 million compared with February 2025. Officials noted that February typically sees more refunds than payments for the tax.
Fiscal year-to-date Corporation Business Tax collections total $1.389 billion, down $861.4 million, or 38.3%, from the same period last year. Treasury officials said the decline has been driven largely by elevated refund payments and decreases in final and estimated tax payments.
Other revenue sources showed increases.
The Insurance Premiums Tax brought in $306 million in February, up $49.9 million, or 19.5%, compared with the same month last year. Fiscal year-to-date collections for the tax are $255.9 million, an increase of $94.1 million, or 58.1%.
Revenue from the Petroleum Products Gross Receipts Tax totaled $137.3 million in February, an increase of $7.1 million, or 5.4%, over last year. Fiscal year-to-date collections for the tax stand at $932.3 million, up $50.4 million, or 5.7%.
Officials noted that a 4.2-cent-per-gallon increase in the petroleum products tax, which took effect Jan. 1, 2026, began influencing revenue totals in February due to the one-month reporting lag.
Treasury officials said they expect moderate revenue growth to continue through fiscal year 2026, consistent with the revenue forecasts included in the governor’s fiscal year 2027 budget proposal.
