Governor Phil Murphy signed a record-breaking $58.8 billion state budget, just ahead of the July 1 deadline, cementing New Jersey’s spending plan for fiscal year 2026. The budget includes more than $1.2 billion in new revenue from tax and fee increases, targeting online gaming, tobacco products, and high-end real estate sales.
The most notable changes include raising taxes on online gambling and sports betting to a uniform 19.75%, up from 15% and 13%, respectively. Lawmakers defended the move, saying the industry had been “getting off too easily,” despite opposition from Atlantic City casinos and their online partners, who warned of job losses and reduced innovation. The tax increases, including a new levy on daily fantasy sports, are expected to bring in an additional $250 million annually. The Greater Atlantic City Chamber provided testimony in opposition to the tax increases.
Other revenue generators include a hike in the state’s cigarette tax from $2.70 to $3 per pack and a tripling of taxes on electronic cigarette products to 30 cents per milliliter or 30% of the retail price for bottled vape liquid.
Real estate transactions will also become more expensive under the new budget. The real estate transfer fee will double to 2% on homes sold for between $2 million and $2.5 million, with higher tiers reaching up to 3.5% on homes sold for more than $3.5 million. The seller will be responsible for paying the fee.
The budget includes $1.23 billion for critical investments in State and local highway and bridge projects, and another $767 million for NJ TRANSIT capital projects.
Despite the new taxes, the budget preserves several key spending priorities. It maintains a full pension payment, fully funds the school aid formula, and continues popular tax relief programs such as ANCHOR and StayNJ. The budget also sets aside a robust $6 billion surplus.
Several tax proposals were ultimately dropped from the final plan, including higher taxes on warehouse truck traffic, cannabis license holders, and recreational activities like bowling, mini golf, and batting cages.
The Greater Atlantic City Chamber of Commerce serves as a powerful voice for the business community at local, county, and state levels. We actively advocate on behalf of our members, influencing policies and regulations to create a more favorable business environment. Your membership strengthens this collective voice. To learn more about the policy and advocacy work done by the Greater Atlantic City Chamber, contact info@acchamber.com or (609) 345-4524.
