JERSEY SHORE – New Jersey drivers will see another bump at the pump when the calendar flips to the new year, as the state’s gas tax is set to rise once again.
Beginning January 1, the tax on gasoline will increase by 4.2 cents per gallon, according to the New Jersey Department of the Treasury. With the change, motorists will pay a total of 49.1 cents per gallon in taxes on gasoline and 56.1 cents per gallon on diesel.
The adjustment comes only months after a 2.6-cent increase that took effect at the start of 2025. State records show that from 2017 through 2021, the tax largely held steady or climbed, before dropping by a combined 9.3 cents over 2022 and 2023. Rates began rising again in 2024.
Treasury officials say the latest hike is tied directly to funding demands for the state’s Transportation Trust Fund, which supports major roadway and bridge projects. A law enacted in 2024 requires the fund to generate roughly $11 billion over five years to maintain and improve New Jersey’s transportation network.
To meet that target by 2029, the state recalculated the Petroleum Products Gross Receipt Tax, which is designed to shift based on fuel consumption and revenue needs.
“Because fuel consumption has been running lower than last year, the formula requires a 4.2-cent increase this January,” State Treasurer Elizabeth Maher Muoio said in a statement. She noted that the dedicated funding stream remains essential for keeping infrastructure projects on track.
As of July 2025, New Jersey drivers were already paying some of the highest gas prices in the nation, ranking eighth overall — behind Maryland and just ahead of Virginia.
