This Is How Much New Jersey’s Gas Tax Will Increase In 2025

There are a variety of reasons why Gas Prices fluctuate every year. You will pay more or less at the Gas Station based on a state's Tax Rates, Oil Market Fluctuations, Economic Inflation, and regional median income projections.

In New Jersey, the state applies a tax on all Gasoline and Diesel purchases. There are two forms of tax that impact Gas Prices in NJ: the Petroleum Products Gross Receipt Tax (PPGRT) and the Motor Fuels Tax.

The rate for the PPGRT is adjusted each year to meet the revenue goals for supplying the state's Transportation Fund which is used to upgrade the state's infrastructure.  But this tax rate will increase next year due to new legislation signed into law by Governor Phil Murphy earlier this year.

How Much Will New Jersey's Gas Tax Increase In 2025?

New Jersey State Treasurer Elizabeth Maher Muoio announced that the new formula for the State’s Transportation Trust Fund necessitates a Gas Tax rate Increase to meet New Jersey's budget goals:

“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 - 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 2.6 cent increase may not seem like much on the surface. However, according to the Tax Policy Center, New Jersey has one of the highest State Fuel Tax Rates in the United States. These high Gas Tax Rates inflate the price you pay because the gas station has to mark up the cost per gallon to compensate for the tax.

New Jersey is 30th on the list of median Gas Prices at $2.96 per Gallon.  With the Petroleum Products Gross Receipt Tax increasing each year for the next five years, you can expect to keep paying more money to fill up your gas tank.

Speaking of Gas Stations, there are 10 Items you should never buy at New Jersey Gas Stations, and here are the reasons why: