NJ Businesses Saving $300M With These New Tax Cuts, State Says

NEW JERSEY - Businesses in New Jersey are paying a lower unemployment insurance tax rate beginning beginning this month with the start of the new fiscal year.

According to the New Jersey Department of Labor and Workforce Development (NJDOL), the reduction in rates comes after already higher-than-expected contributions, allowing for the amount to be reduced.

Employer rates to the Unemployment Insurance (UI) Trust Fund are determined by two characteristics. First, the overall health of the fund decides which bracket of the UI tax table applies to all New Jersey employers. Second, an employer’s history with unemployment claims sets their specific rate within that sector. The tax tables are fixed by the New Jersey Unemployment Compensation Law and automatically update each fiscal year based on the fund’s status, ensuring rates reflect both state-wide and individual situations.

The rate for employers to pay will now move to a range of 0.5 percent to 5.8 percent. This is a shift from the current 0.6 percent to 6.4 percent. The NJDOL says this will save employers an estimated $300 million over the next fiscal year.

“We are now able to ease employers’ burdens while continuing to strengthen our workforce. This progress reflects our ongoing commitment to create a robust economy that supports our employees," added Governor Phil Murphy.

“This is significant news for both the state and its employers and highlights the strength and resilience of New Jersey’s economy,” said Labor Commissioner Robert Asaro-Angelo. “The reduction in employer contribution rates underscores our state’s forward momentum and commitment to fostering job creation and economic growth.”

As the new fiscal year is about to begin in New Jersey, individual residents are waiting to see the results of their higher property tax contributions being put to use. The average property tax bill in New Jersey topped $10,000 for the first time last year, rising to $10,095, according to the Department of Community Affairs.

Of those numbers, the average resident paid 52.2 percent of their total for school taxes, 29.9 percent for municipal taxes, and 17.9 percent for county taxes.

Patch found that the small borough of Tavistock, in Camden County, had the highest average taxes at $37,908, with an average property value of $2.64 million.

The table below shows which municipalities paid the most per average property tax filing towards schools in 2024:

New Jersey still ranks seventh overall across the nation in the 2025 Kids Count Data Book — a study done by the Annie E. Casey Foundation that measures children in multiple categories, including health and education. The Garden State came out second in education and sixth in health, but fell to the middle for economic well-being and a collection of family and community factors.

MORE FROM PATCH: NJ Kids Rank High For Well-Being In Nationwide Study

According to a study by nonprofit advocacy group New Jersey Policy Perspective (NJPP), New Jersey would be able to raise a collective $4 billion more per year if they move forward with different ways to get more from its wealthier residents.

The study, also contributed to by the Institute on Taxation and Economic Policy, calls on the state to raise its taxes on richer residents and corporations, up its sales tax and revamp its tax code. The findings also showcase the belief that another $4B to the state would be enough to enable all children to have free meals in public schools, restore state aid to schools that are being forced to cut staff and programs, and cover the entire shortfall in the state budget.

The budget for New Jersey's next fiscal year also brings with it new additions to taxes that would put residents on the hook when buying a home.

Read more from Patch about the NJ "mansion tax"