Gasoline will cost even more in New Jersey next year because of law

⚫ NJ will hike the gas tax yearly for five years, at least

⚫ The 2025 rate hike has been announced

⚫ The amount depends on factors such as demand and revenue shortfalls

Every gallon of gasoline pumped into your vehicle will be taxed at a higher rate than originally expected, come 2025.

The New Jersey Department of Treasury has announced that the state's gas tax rate will increase by 2.6 cents per gallon beginning Jan. 1, as part of a 2024 law that supplies more money to the Garden State's Transportation Trust Fund.

The tax rate is going from 31.8 cents per gallon to 34.4 cents for gasoline, and from 35.8 cents to 38.4 cents for diesel fuel.

When combined with the Motor Fuels Tax, the total tax rate that routine motorists pay for gasoline will be 44.9 cents per gallon.

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“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,” State Treasurer Elizabeth Maher Muoio said. “We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs.”

A law signed by Gov. Phil Murphy in March reauthorized the TTF by, in part, calling for an increase of the state's gas tax for five years.

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The anticipated annual increase was 1.9 cents per gallon, but that can be adjusted, based on demand and prior revenue projections that aren't fulfilled.

The state's target is for gas taxes to bring in at least $2 billion annually.

In January, New Jersey motorists will also begin paying higher tolls on both the Garden State Parkway and the New Jersey Turnpike.

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