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Solomon Proposes 20% Tax Rate Increase to Address $255 Million Jersey City Deficit
Jersey City Mayor James Solomon announced Wednesday that the city is proposing a 20% increase to its tax rate, a step the administration says is necessary to address a structural deficit of roughly $255 million, about 28% of the city’s annual operating budget.
The increase, if approved, would be reflected in residents’ third-quarter tax bills.
“I know this tax increase is painful, especially for people on fixed incomes and the working families of Jersey City,” Solomon said. “We did not create this hole. It was created during good economic times through years of one-time gimmicks, hidden bills, and deferred costs, but it is our job to climb out of it responsibly.”
The proposed increase follows the administration’s February report that detailed the deficit and attributed it to budgeting decisions made under former Mayor Steven Fulop. Since taking office in January, the administration said it has cut the gap by about $55 million, lowering the shortfall to roughly $200 million.
The city’s plan rests on three pillars: cutting costs, generating non-tax revenue, and pursuing state aid. The city switched its health benefits administrator from Horizon to Aetna on March 1, reducing costs by about $25.8 million with no change to employee coverage. The administration also ended the Centre Pompidou museum project, which it said saved $40 million, and Solomon is taking a salary of $1 for 2026.
The city projects at least $15 million in new annual revenue through measures including modernized code enforcement, updated permit fees, and camera-assisted parking enforcement. It is also seeking roughly $120 million in state aid, modeled on precedents set for Atlantic City and Newark.
The proposal will be submitted to the City Council at its June 24 meeting. A detailed budget is expected to be introduced July 15, with passage targeted for early August. Residents can estimate their increase at JCNJ.org/calculator.
