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'Another stress on the pocketbook.’ NJ gas tax going up next year

State officials say the increase is necessary to refill the state’s Transportation Trust Fund.

Christine Queally

Dec 5, 2025, 5:28 PM

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The New Jersey state gas tax is going up, which means drivers will be paying more at the pump.

The New Jersey Department of the Treasury announced the 4-cent hike earlier this week.

They said the additional funds will go toward the state's Transportation Trust Fund, or TTF, which pays for improvements to the state's roads and bridges.

"Another headache, another stress on the pocketbook," said Eric Cruz, who travels often through New Jersey, when asked about the increase. "You have to choose food, you have to pay for housing or a mortgage, education, the bare necessities. This is just another strain upon the families of this country, and I should say, the state of New Jersey."

Under a new law, the TTF is required to provide almost $11 billion over the next five years to support infrastructure projects.

According to the state, to meet that latest target, the gas tax must go up.

RELATED: New year, new gas tax increase in New Jersey

The state treasury said the tax is also going up because gas consumption has trended below last fiscal year's level, and they need to make up for lost revenue.

"You don't really have options. Work has to get done. You have to see your family. So, it's kind of forced upon you. It's not really an option in New Jersey whether to drive a car or not drive a car," said Chris, a New Jersey driver.

Several drivers News 12 spoke to said they'd like to see legislative action to curb gas prices.

However, the New Jersey Department of the Treasury is the only entity that sets the gas tax rate.

Still, some drivers said they support the increase.

"I try not to drive if I don't have to anyway, for environmental reasons. So, honestly, I don't mind paying a little bit more for gas if it would even encourage people to drive less," driver Tara Hanley said.

The tax increase will go into effect on Jan. 1, 2026. This brings the total gas tax to nearly 50 cents per gallon.

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