NJ Gas Taxes Have Drivers Paying Almost 50 Cents A Gallon In 2025

2025 isn't shaping up to be a great year for New Jersey drivers. Your wallet's about to get even lighter than you anticipated at the start of the new year.

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Gas prices will be higher, with an increase of 2.6 cents per gallon compared to 2024. While this may seem like just a small hike, it’s important to understand why this is happening and what it means for New Jersey’s future.

NJ Gas Tax Increase Coming January 2025

The reason behind the increase is tied to funding some major infrastructure projects across the entire state. The extra tax revenue will help support the Transportation Trust Fund, which finances critical projects on NJ's roads and bridges. This is part of a broader $10 billion plan to improve and repair New Jersey’s transportation systems over the next five years. Think of it as a long-term investment in the state’s infrastructure to ensure safer, more efficient travel for everyone.

Unlike many states, New Jersey’s gas tax is based on volume, not price. This means that no matter how the price of gas fluctuates, the tax stays tied to how much you’re filling up, not how much you’re paying per gallon. For 2025, sources report that drivers will pay a total of 44.9 cents per gallon of regular gas and 51.9 cents per gallon for diesel. This includes the federal tax of 18.4 cents.

So while 2025 might feel like a fresh start, it’s also going to be a reminder that maintaining and improving roads and transportation requires investment. Unfortunately, that investment means paying a bit more at the pump.