New Jersey’s business tax revenues experienced significant declines in August 2025, according to recently released state figures. The Corporation Business Tax (CBT), which is the state’s second largest General Fund revenue source, reported collections of negative $38 million for the month. This marks a 258.6% decrease compared to August 2024. Similarly, the Business Alternative Income Tax (BAIT) dropped from $20.9 million in August 2024 to $16.1 million this year, a decline of 23.1%. Combined, these two taxes are down 282% year-over-year for August.
For the fiscal year that began in July, the downward trend has continued. CBT collections over the first two months have fallen by 54.8%, from $241.4 million last year to $109 million this year. BAIT collections are also down by 36% over the same period. Altogether, business tax revenue is down by 91% compared with this point in fiscal year 2025.
In contrast, total major revenues for New Jersey’s overall budget have grown by just 1.3% so far this year, compared to an increase of 8.3% at this time last year. This highlights how much business tax performance is impacting the state’s fiscal position.
Some officials have suggested that weak early-year returns may be offset by stronger September collections, but past trends do not support this view. “CBT and BAIT actually improved from 2023 to 2024 in the same reporting window – instead of plummeting as they did this year,” notes the analysis in the release.
The report warns about potential future consequences if business tax revenues do not recover: “If New Jersey’s business tax base continues to erode, future budgets will face growing pressure, forcing tough choices on spending, borrowing, or further tax increases that could worsen competitiveness.”
The message urges policymakers to prioritize economic growth and address what it describes as clear warning signs: “New Jersey’s economy and business climate must be the top focus for today’s and tomorrow’s policymakers. Without sustained business growth, the state’s fiscal foundation is at risk.”
