Here’s How Much NJ Is Increasing The Gas Tax

NEW JERSEY — New Jersey drivers will be paying more at the pump in the new year, state officials announced.

On Monday, the Department of the Treasury announced that the state gas tax rate will increase by 2.6 cents per gallon starting on Jan. 1, 2025.

A law passed earlier this year allows for annual adjustments of the tax to support the Transportation Trust Fund, which funds road projects and NJ Transit's capital needs, until 2029. The rate may be raised or lowered, depending on if revenues meet the goal for each fiscal year.

New Jersey has two separate taxes on gasoline and diesel fuel, the Petroleum Products Gross Receipt Tax (PPGRT) and the Motor Fuels Tax.

With the new increase to the PPGRT, the combined tax rates that motorists will pay for gasoline and diesel fuel will be 44.9 cents per gallon and 51.9 cents per gallon, respectively. State officials project that gasoline and fuel consumption in Fiscal Year 2025 will be 0.6 percent above Fiscal Year 2024 levels.

Officials said that imposing the new tax will increase revenue targets for the Highway Fuel Cap to $2.115 billion in fiscal year 2026, $2.119 billion in FY 2027, $2.366 billion in FY 2028 and $2.366 billion in FY 2029.

“Based on our review of the consumption data, combined with the requirement to meet the new statutory target, we have determined that the new formula dictates a 2.6 cent increase this coming January,” said State Treasurer Elizabeth Maher Muoio in a news release. “We are pleased that this dedicated funding stream continues to provide billions of dollars across the State to support our critical transportation infrastructure needs.”