Environmental protection tax is an effective means to deal with environmental problems. China's current environmental protection tax system has low tax rates and other issues, making it difficult to fully exert its environmental governance capabilities. Jiangsu Province still has space for improvement in the ecological environment, and raising the environmental protection tax rate is also conducive to improving the quality of the ecological environment. Construct the 2018 environmental and social accounting matrix for Jiangsu Province, use a dynamic CGE model to refine the impact of environmental protection tax collection on the economic system, and analyze the impact of the current environmental protection tax rate of 2, 3, and 4 times in 2018-2030 on Jiangsu Province. The results show that levying higher environmental protection taxes could increase environmental protection tax revenue in Jiangsu Province, reduce pollutants and carbon dioxide emissions, which have a synergistic effect of reducing pollution and carbon dioxide. However, higher tax rates of environmental protection taxes would also have a negative impact on Jiangsu Province's GDP, corporate and resident income, and exports, and the tax burden is mainly transferred to residents. Therefore, it is recommended that Jiangsu Province would increase environmental protection tax rates reasonably and scientifically in combination with economic development goals and environmental protection needs and adopt differentiated environmental protection tax increases for different prefecture-level cities. Jiangsu Province would also adopt policies to improve carbon emission reduction efficiency such as carbon taxes, establish pollution reduction and carbon reduction funds, and use part of the environmental protection tax revenue to improve pension levels and provide subsidies for export products, which would be helpful to improve the quality of the ecological environment and reduce negative impacts on the macro economy.