Treasury: July Revenue Collections Higher as the New Fiscal Year Begins

Treasury: July Revenue Collections Higher as the New Fiscal Year Begins

(TRENTON) - The Department of the Treasury reported today that July revenue collections for the major taxes totaled $3.632 billion, an increase of $306.4 million, or 9.2 percent above last year. The revenue increase was led by higher collections from the Sales and Use Tax (SUT) and the Corporation Business Tax (CBT), while the Gross Income Tax (GIT) was lower. Total major revenues of $53.373 billion for the 13-month period ending in July were up $3.194 billion, or 6.4 percent higher than the same period last year.

July collections for the GIT, which is dedicated to the Property Tax Relief Fund, totaled $1.353 billion, down $117.8 million, or 8.0 percent lower than last year. The decrease in net revenues was primarily due to a timing shift that moved a large weekly Employer Withholding payment batch into June, while Final Payments were also lower, and refunds were moderately higher.

The SUT, the largest General Fund revenue source, reported $1.664 billion, an increase of $260.8 million, or 18.6 percent above last July. The revenue growth appears to be associated with activity in sectors such as information technology, data centers, and artificial intelligence. Some portion of the increase also likely relates to FIFA World Cup-related economic activity.

The CBT, which is the second largest General Fund revenue source, totaled $282.0 million in July, an increase of $112.8 million, or 66.7 percent. The revenue growth was primarily due to higher collections from Estimated Payments, while refunds were notably lower than last July.

Pass-Through Business Alternative Income Tax payments totaled $33.3 million, up by $12.6 million, or 60.7 percent, primarily due to higher collections from Estimated Payments.

Realty Transfer Fee revenues of $51.3 million were up $7.2 million, or 16.4 percent above last July, after having been down for the past two months. Due to a one-month lag in the reporting and payment of the transfer fee, July revenues reflect housing market activity in June, which showed growth from both closed sales and in median home prices.

July is effectively treated as the 13th month of the fiscal year because cash collections include revenues from both Fiscal Year 2026, which just ended, and Fiscal Year 2027, which has just begun.

After the annual GASB accounting process is completed, final collections for FY 2026 will be published in the Annual Comprehensive Financial Report due out in early 2027.

Please see the attached chart for monthly and yearly revenue collection comparisons.