Gov. Philip Murphy said the tax would help make up shortfalls caused by the pandemic, but Republicans warned it would lead to an exodus of wealthy residents.

By Tracey Tully

Gov. Philip D. Murphy campaigned on a vow to raise taxes on the rich in New Jersey.

It took three years and a pandemic to get it done.

Mr. Murphy, a Democrat, joined legislative leaders to announce a budget deal Thursday that includes a higher tax rate for residents earning more than $1 million a year.

The agreement also includes a recurring $500 rebate for families with at least one child and an annual income of less than $150,000 a year for couples and $75,000 for single parents.

The move, which has been panned by Republicans and some business leaders as a risky step that could lead to an exodus of the state’s wealthiest residents, comes amid a growing national debate over whether to increase taxes on the rich to help address a widening income gap.

Joseph R. Biden Jr., the Democratic nominee for president, has proposed raising taxes on people earning more than $400,000 to finance a slate of programs, including expanded day care.

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