(TRENTON) — The Department of the Treasury reported that January revenue collections for the major taxes totaled $5.399 billion, up $72.8 million, or 1.4 percent over last year. The growth in total revenues was led by higher collections from the Gross Income Tax (GIT), the Sales and Use Tax (SUT), and the Pass-Through Business Alternative Income Tax (PTBAIT), while the Corporation Business Tax (CBT) was down. Fiscal year-to-date total revenue collections of $24.901 billion are higher by $968.9 million, or 4.0 percent above the same period last year.

January collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $2.753 billion, up $57.9 million, or 2.2 percent above last year. The increase was primarily due to strong growth in fourth quarter estimated payments, helped along by another exceptional year in the stock market.  GIT revenues would have been higher by $354.5 million, or 14.8 percent after adjusting for one fewer Wednesday employer withholding payment day in January compared with last year.  Fiscal year-to-date, GIT revenues of $11.215 billion are up $1.020 billion, or 10.0 percent above last year.

The SUT, the largest General Fund revenue source, totaled $1.548 billion in January, up $54.9 million, or 3.7 percent over last year. January’s revenues reflected consumer activity in December, including holiday spending due to the one-month lag in the reporting and payment of the Sales Tax. Fiscal year-to-date collections of $7.223 billion are now up by $213.7 million, or 3.0 percent above the same period last year.

The CBT, the second largest General Fund revenue source, totaled $58.6 million, down considerably by $139.0 million, or 70.3 percent from January 2025. The reduction in revenues was due to higher refunds and lower estimated payments.  Fiscal year-to-date collections of $1.412 billion are down $817.8 million, or 36.7 percent below last year. The weakness in CBT revenues this fiscal year continues to be driven by significantly elevated levels of refunds, many of which have been claimed for tax periods prior to 2024, and substantial declines in both final and estimated payments.

PTBAIT revenues totaled $559.6 million, up $30.2 million, or 5.7 percent above last January. The increase was due primarily to higher collections from estimated payments, offset in part by higher refunds. Fiscal year-to-date collections of $2.600 billion are up $317.7 million, or 13.9 percent above last year.

Petroleum Products Gross Receipts Tax (PPGRT) collections in January of $138.2 million were higher by $9.2 million, or 7.1 percent above last January.  Fiscal year-to-date collections of $795.0 million are now up by $43.3 million, or 5.8 percent above last year. The recently announced increase in the PPGRT rate of 4.2 cents per gallon took effect on January 1, 2026, and will begin impacting revenues in the February report, due to the one-month lag in reporting.

Casino revenues totaled $80.5 million in January, an increase of $28.0 million, or 53.1 percent above last year. The increasing popularity of internet gaming and sports betting are two of the main drivers behind the growth in casino revenues. Collections this fiscal year will also be impacted by the enactment of P.L.2025, Chapter 66 (eff. July 1, 2025), which increased internet casino gaming and sports wagering taxes.  Fiscal year-to-date revenues of $485.7 million are running $151.7 million, or 45.4 percent above last year.

Treasury notes that with the release in March of the Governor’s Budget Message for FY 2027, updated FY 2026 revenue forecasts will also be provided.