Gov. Murphy’s Legacy Part IV: A Tax-Hike Trifecta: Property, Income, and Corporate Taxes Soar.

Another of Gov. Murphy’s legacies: the tax-hike trifecta. From Murphy’s first budget in 2018 through 2025, New Jersey property taxes increased 20.6%, including 4.7% last year, to a record $10,570. Murphy also raised the top income tax rate from 8.97 to 10.75%, also a record high. While most states have been cutting income tax rates, Murphy was hiking them. Murphy also managed to hike the top corporate tax rate to 11.5%, the highest in the nation and a record. It’s no surprise that New Jersey has an “affordability” crisis. And no surprise that people and wealth are leaving New Jersey for other states. Murphy’s government union pals win and the rest of New Jersey loses.

Another record for property taxes in 2025. In 2025, New Jersey property taxes rose to another record high, averaging $10,570, according to John Reitmeyer of NJSpotlight News. That was up $475 from 2024, an enormous 4.7% increase and 2% higher than the 2.7% inflation rate. Of course, in counties like Essex, Bergen, Morris, Somerset, and Union, property taxes are substantially higher than the state average. Reitmeyer explains the cause:

[T]o help offset planned program and staff reductions in many K-12 public schools, then-Gov. Phil Murphy and lawmakers allowed dozens of school boards across the state to hike taxes above a general 2% annual cap on levy increases that is written into state law.

The rate increases resulted an additional $1.6 billion in property tax revenues, of which $850 million went to school districts. We can only guess which teachers union was pressing Murphy behind the scenes to help maintain its membership — and dues — levels. Perhaps the one that sent over $20 million of member dues to pro-Murphy Super PACs during Murphy’s tenure?

For the record, since 2018, average property taxes are up $1,803, or 20.6%. Those increases all occurred on Murphy’s watch.

And it’s not only property taxes, it’s income taxes, too. A recent study by the Tax Foundation analyzed the substantial and growing divergence between income tax-cutting states and income tax-hiking states (like New Jersey). Most states are cutting taxes. In 2006, there were 15 states with top rates below 5%, now there are 26 (including eight with no income tax at all). But a select few are raising them: in 2006, only one state had a top rate over 10%, now there are five:

1. California 14.6%
2. Hawaii 11%
3. New York 10.9%
4. New Jersey 10.75%
5. Oregon 10%

As with property taxes, under Murphy, rates went up: before Murphy took office, New Jersey’s top rate was 8.97%. It’s now 10.75%. Meanwhile, 23 states were cutting rates: Since 2021, 23 states have reduced rates, while five, including New Jersey, have raised them.

And corporate taxes, too. Murphy also increased the top corporate tax rate to 11.5%, the highest in the nation.

High taxes have consequences: outmigration of wealth and people. Four of the five 10%+ states saw net domestic outmigration from 2024-25 and Oregon was essentially flat.

1. California -229,000
2. New York – 137,000
3. New Jersey -37,000
4. Hawaii -9,000
5. Oregon +2,000

The Tax Foundation summarized the dilemma that confronts New Jersey:

This divergence increases the risk for high-tax states. Not only are their rates far higher than the norm for recent decades, but these high rates are set against a backdrop of rate relief elsewhere, and in an environment of increasing mobility for individuals and businesses alike. Taxpayers seeking to avoid high taxes or to secure jobs and opportunities that tend to flow to lower-tax environments have more options than ever before and greater incentives to move due to the growing divergence.

That’s New Jersey in a nutshell.

Tax-hike trifecta to pay for massive government spending. A tax-hike trifecta is just another malign Murphy legacy to go along with an affordability crisis, and the outmigration of people and wealth. Our status quo, former-governor was elected by the government unions (led by the NJEA) and largely governed for their benefit. He increased state government spending by 69% — from $35 billion to $69 billion — and increased taxes to (try to) pay for it. Great for his government union pals, terrible for the rest of the state. The true Murphy legacy.