A series of tax increases are taking effect in New Jersey, targeting tobacco products, online gambling, and high-value real estate. The changes, passed in late June, are expected to generate over $600 million in new revenue for the 2026 fiscal year.
Starting August 1, smokers will pay more for cigarettes and vaping cartridges. Earlier this month, higher tax rates took effect on online gambling and sports betting. Daily fantasy sports operators will also face increased fees.
A new fee structure on high-end real estate is projected to bring in $282 million. Taxes on online betting could add $210 million, while tobacco hikes are expected to raise $47 million. Adjustments to health care facility fees are forecast to yield $73 million.
Some proposed taxes were rejected, including a phone line fee to fund a mental health hotline and a broader sales tax expansion to services like bowling alleys.
Despite record-high projected revenue of $57.3 billion, the state faces a structural deficit nearing $1.5 billion. Lawmakers also used over $550 million in debt relief funds to balance the budget.
With all Assembly seats on the November ballot, taxes and cost of living are expected to be key issues for voters.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.