New Year, New Changes: New Jersey Gas Tax Increase Coming in 2026

As the new year is just days away, New Jersey drivers and businesses should be aware of the upcoming change that will impact fuel costs statewide.

The New Jersey Department of the Treasury has announced that the state gas tax will increase by 4.2 cents per gallon, effective January 1, 2026. This adjustment is part of a statutory formula tied to funding the state’s Transportation Trust Fund, which supports critical infrastructure and transportation projects across New Jersey.

What’s Changing?

• Gasoline tax: Increasing to 49.1 cents per gallon

• Diesel tax: Increasing to 56.1 cents per gallon

The increase reflects lower overall fuel consumption and a higher revenue target required by law to maintain long-term transportation funding.

Why It Matters

Revenue from the gas tax helps fund nearly $11 billion in statewide transportation and infrastructure projects over a five-year period, including road repairs, bridge improvements, and transit upgrades. If you’d like to learn more details directly from the state, click here to read the full announcement.