NJ Lawmakers Propose Temporary Sales Tax Hike for 2026 FIFA World Cup

Planning efforts continue in New Jersey as the state gets ready to host several 2026 FIFA World Cup matches this summer, including possibly making some items more expensive during the tournament. The entire Garden State is prepping to host over a million soccer (or football) fans, and now some lawmakers are pushing for a tax hike to offset hosting costs. The proposed bill includes an increased sales tax in a specific area of the state for the five weeks the tournament takes place in New Jersey, drawing criticism from other elected officials. Here’s what we know about the proposed tax hike for the 2026 FIFA World Cup tournament in New Jersey. 

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The Proposed World Cup Tax Package

Senator Paul Sarlo, a Democrat representing New Jersey’s 36th Legislative District, proposed bill S4111 that would impose a temporary tax hike for the five weeks the sports tournament takes place at MetLife Stadium. The goal is to help offset hosting costs. New Jersey recently received over $66 million in federal funding for security planning and $20 million in state funding for tournament planning efforts.     

The tax hike specifically targets the Hackensack Meadowlands District from June 12 to July 21. The Meadowlands District includes towns like East Rutherford, Rutherford, Carlstadt, Little Ferry, Lyndhurst, Moonachie, North Arlington, Ridgefield, Jersey City, Kearny, North Bergen, South Hackensack, Teterboro, and Secaucus. However, Governor Mikie Sherrill’s team clarified the impacted area, telling The Local Girl that this technical definition of this district in the proposed bill eliminates most areas of these towns, so it’s just applying to the stadium and a lot of the surrounding swamp land. 

NorthJersey.com broke down the tax package as follows:

  • Increased Sales Tax: A 3% increase on items, such as food, drinks, and entertainment, within the 30-square-mile Meadowlands District. That would bring the current 6.625% sales tax up to 9.625%.
  • Hotel Occupancy Tax: A 2.5% surcharge on hotels and motels outside of Atlantic, Monmouth, Ocean, and Cape May counties.
  • Ride-Share Fee: A $0.50 surcharge on prearranged rides, such as Uber or Lyft, to or from the Meadowlands area.
  • Gambling Surcharge: A 10% surcharge on corporate gambling earnings related to World Cup matches, paid to the Casino Revenue Fund.

The plan would impact both visitors and New Jersey residents, but it includes a provision that allows Jersey residents to claim a tax credit for extra costs incurred during this stretch. 

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Chris Eilert, Chief of Staff for Sen. Sarlo, told NorthJersey.com that the state is “incurring significant costs for public safety and security for hosting the World Cup games in the Meadowlands.” Eilert went on to say, “If the state can recoup those costs by assessing fees on the entities sponsoring and producing the games, and on the people attending the games, then that should be something the administration pursues.” The Local Girl team reached out to the Sarlo team for more information and will update this piece when we hear back. 

“This is a once-in-a-generation event, and Governor Sherrill is committed to ensuring that the FIFA World Cup is safe, successful and showcases the best of New Jersey,” Seab Higgins, Chief Spokesperson and Senior Advisor to Governor Mikie Sherrill, told The Local Girl. “Gov. Sherrill will also work with the legislature to ensure the FIFA World Cup brings real economic benefits for the State of New Jersey, our businesses, and most importantly keeps costs down for residents.” 

Republicans are criticizing the bill, claiming it could discourage tourism and undermine the expected economic boost the state is expecting. 

The way to make that money back is by encouraging people to come here, spend here and come back again — not by taxing them the moment they arrive,” Assemblyman Christopher DePhillips, a Republican representing New Jersey’s 40th Legislative District, told NJ.com. That area includes parts of Bergen, Essex, and Passaic counties. 

The bill still needs to pass in both the New Jersey Senate and Assembly, then receive Governor Sherill’s signature before becoming law.

Following The Funding

$20 million was recently allocated for planning efforts for the World Cup in New Jersey. The New Jersey Economic Development Authority approved the $20 million allocation on March 16th, 2026. $5 million of that amount will go towards Governor Sherrill’s initiative for statewide fan zones and other community events during the tournament.   

“As we prepare to host visitors from around the world this summer, we are committed to ensuring New Jersey residents and small businesses from across the state can join in on the festivities and benefit from the economic impacts of the tournament,” said Governor Sherrill in an online statement

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On March 18th, 2026, the Federal Emergency Management Agency (FEMA) awarded $625 million in funding to 11 cities ahead of the 2026 FIFA World Cup. The funds allow state and local officials to “hold operational exercises, conduct staff background checks and strengthen cybersecurity defenses,” per FEMA. The cities could also use the funding to pay for increased police and emergency response at World Cup events, hotels, and transportation hubs. New Jersey received $66.2 million  on behalf of New Jersey and New York.

New Jersey taxpayers have already spent or contracted at least $307 million for work prepping MetLife Stadium and the surrounding area for the tournament, NorthJersey.com reports.

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