New Jersey Legislature Approves $58.8 Billion Budget with Increased Taxes on Gambling, Vaping, and Luxury Real Estate

TRENTON, New Jersey — New Jersey’s lawmakers passed a $58.8 billion budget Monday that includes higher taxes on online gambling, sports betting, vaping products, and high-value home sales. The budget, the final under Governor Phil Murphy’s term, aims to fund key priorities such as public education and property tax relief. Senate Budget Chair Paul Sarlo highlighted full pension funding and record property tax relief as major achievements.
Republicans criticized the process, saying budget decisions were rushed and made behind closed doors. They also expressed concern over growing spending levels. Tax rates for internet sports betting and online gambling will increase to 19.75 percent, lower than the governor’s proposed 25 percent. Daily fantasy sports operators will see their tax rate rise to match. Supporters argue that these rates bring New Jersey in line with neighboring states and will boost state revenue by approximately $250 million. Property tax relief programs will expand, including the ANCHOR program for homeowners and renters, and a new Stay NJ program targeting seniors.
Real estate transfer fees will increase on homes selling for $2 million or more, with rates ranging from 2 percent up to 3.5 percent for the most expensive properties.
Taxes on cigarettes will rise by 30 cents per pack, and vaping liquids will be taxed at 30 cents per milliliter, tripling the previous rate. Several proposed taxes on recreational activities, alcohol, cannabis licenses, and warehouse truck traffic were dropped after opposition. The budget eliminates sales tax on baby essentials such as car seats and strollers. Officials stressed the importance of maintaining a $6.3 billion surplus to safeguard against potential federal Medicaid cuts expected under the next administration.