Get ready to pay more at the pump. N.J. just increased your gas tax.

New Jersey’s gas tax will rise by 2.6 cents per gallon in January, with the money going to fund the state’s transportation projects, state officials announced Monday.
There will be an increase from 31.8 cents to 34.4 cents a gallon for gasoline, and from 35.8 cents to 38.4 cents for diesel fuel. Combined with the motor fuels tax, that’s going to give consumers an overall tax of 44.9 cents and 51.9 cents a gallon for gas and diesel, respectively.
“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.
“We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs.”
The gas tax is earmarked for the Transportation Trust Fund, which helps finance the state’s highway and rail projects.
For a long time, New Jersey posted some of the lowest gas taxes in the nation as few governors were enthusiastic about raising it in a state so reliant on cars. That came to an end in 2017, the last year of former Gov. Chris Christie’s term, when he and lawmakers agreed to raise the tax and assess it each year.
New Jersey’s gas tax ranked 8th highest in the nation last January, according to a study by the Tax Foundation.
The newest increase set for 2025 came as the result of a law Gov. Phil Murphy this year that gradually raises the fuel cap until 2029.
The state said Monday it has projected a nearly 1% increase in gas and diesel fuel consumption for next year.
Jelani Gibson may be reached at [email protected]. Follow him on X at @jelanigibson1 and on LinkedIn.