Treasury: September Revenues Rise 22.1%, Reflecting Rebound From Sharply Lower CBT Collections Last Year

(TRENTON) — The Department of the Treasury reported that September revenue collections for the major taxes totaled $6.337 billion, up $1.147 billion, or 22.1 percent over last year. However, this growth rate should be interpreted cautiously. Last September’s Corporation Business Tax (CBT) collections were significantly understated due to a sharp drop in estimated payments as taxpayers adjusted to federal tax law changes. A rebound in this September’s CBT collections was expected as those effects unwound, meaning much of the increase reflects a one‑month correction rather than a broader trend. Accordingly, these results are not fully indicative of future revenue performance. Fiscal year-to-date total collections of $10.169 billion are higher by $1.617 billion, or 18.9 percent above last year.

September collections for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $2.491 billion, up $324.9 million, or 15.0 percent above last year.  All four GIT payment components registered increases in revenues, but refunds were higher as well.  However, revenue growth was influenced by an extra Wednesday withholding payment compared with last September.  GIT collections would have been up by $103.6 million, or 4.3 percent above last year, after adjusting for the extra withholding payment. Fiscal year-to-date collections of $4.156 billion are up by $415.3 million, or 11.1 percent.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.162 billion, up $97.9 million, or 9.2 percent higher than last year. Due to a one-month lag in the reporting and payment of the Sales Tax, September revenues reflect consumer activity in August.  SUT revenue growth continues to be influenced by a range of economic activities, particularly within technology‑oriented sectors. Fiscal year-to-date collections of $2.490 billion are up $263.8 million, or 11.9 percent over last year.

The CBT, the second‑largest General Fund revenue source, totaled $1.185 billion in September, up $505.2 million, or 74.3 percent, from last year. As noted earlier, the increase reflects a rebound in estimated payments after last September’s sharper‑than‑expected decline, likely attributable to taxpayer adjustments to federal tax law changes. Fiscal year‑to‑date collections of $1.435 billion are up $646.4 million, or 81.9 percent compared with last year.

Pass-Through Business Alternative Income Tax (PTBAIT) revenues totaling $991.1 million were up $110.6 million, or 12.6 percent above last September. The increase in revenues was mainly due to higher collections from estimated payments while refunds were lower. Fiscal year-to-date revenues of $1.044 billion are up $128.4 million, or 14.0 percent above last year.

Realty Transfer Fee revenues of $49.9 million were down $3.0 million, or 5.7 percent, from last year; however, this decline reflects a timing distortion from a county’s late remittances last September. Adjusted for that anomaly, the Realty Transfer Fee would have grown by nearly 11 percent this month. Year‑to‑date collections of $110.9 million are up $6.4 million, or 6.1 percent, from last year.

The Graduated Percent Fee (GPF) totaled $52.2 million in September, an increase of $7.6 million, or 17.0 percent above last year. Year-to-date GPF revenues of $120.6 million are $46.4 million, or 62.6 percent higher than last year, however, delayed implementation of the GPF at the start of FY 2026 and substantial refund activity had affected prior-year collections.

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