New Jersey lawmakers have approved the state’s largest budget in history at nearly $59 billion, bringing several tax increases that will affect residents in different ways. Here’s what you need to know about the changes taking effect.
Tobacco and Vaping Products See Major Increases
If you use tobacco or vaping products, expect to pay significantly more. The state is raising taxes on vape products by up to 200%, while cigarette taxes will increase by over 10%. These substantial hikes reflect ongoing efforts to discourage tobacco use while generating additional revenue.
Online Gaming Faces Higher Taxes
New Jersey’s popular online gambling and sports betting platforms will see tax rates climb to 19.75%. While this represents a compromise from the governor’s originally proposed 25% rate, it still marks a notable increase that operators may pass along to consumers through adjusted odds or promotions.
Luxury Home Sales Hit with “Mansion Tax”
Sellers of high-value properties will face steeper realty transfer fees. Homes selling between $2 million and $2.5 million will incur a 2% fee, with rates climbing by half a percentage point for every additional $500,000 in value, capping at 3.5% for properties worth $3.5 million or more.
What Didn’t Change
Lawmakers rejected proposed increases to warehouse taxes and liquor taxes, providing some relief to businesses and consumers in those areas.
These tax increases will fund expanded public worker pensions and K-12 education programs, though budget experts note they contribute to ongoing structural deficit concerns.