New Jersey drivers will see a 2.6-cent increase in the state’s gas tax starting January 1, bringing the total rate to 44.9 cents per gallon for gasoline and 51.9 cents for diesel, according to the state Department of the Treasury.
The tax hike is designed to meet revenue targets for the Transportation Trust Fund (TTF), which finances road, bridge, and rail projects across the state. The increase follows a review of fuel consumption trends and funding requirements for ongoing infrastructure investments, officials said.
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State Treasurer Elizabeth Maher Muoio explained that the adjustment reflects a formula tied to fuel usage and statutory revenue goals. The TTF, reauthorized earlier this year for another five years, allows for more than $10 billion in spending on transportation improvements.
Unlike taxes tied to fuel prices, New Jersey’s gas tax is based on volume, ensuring consistent revenue regardless of fluctuating pump prices. The federal gas tax of 18.4 cents per gallon, unchanged since 1993, is also included in the price drivers pay.
Additionally, a new annual fee for zero-emission vehicles, introduced in July, is set to rise incrementally from $250 to $290 by 2028. This fee supports the TTF alongside contributions from toll-road authorities and a portion of state sales tax revenue.
Future increases in the gas tax are likely, as new revenue targets for the TTF require additional funding. Officials estimate the rate may rise by about two cents annually through 2029 to meet these goals.
Muoio credited programs like the gas tax with providing billions in funding to support “critical transportation infrastructure needs.”
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.