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New Jersey's gas tax will increase by 2.6 cents per gallon starting January 1, 2024, according to an announcement by state officials. The increase will bring the total tax on gasoline to 44.9 cents per gallon. The additional revenue will be used to fund the state's transportation projects.
The increase is a result of a law passed earlier this year that gradually raises the state's fuel tax until 2029. State Treasurer Elizabeth Maher Muoio explained that the new formula required a 2.6 cent increase to meet the new statutory target. "We are pleased that this dedicated funding stream continues to provide billions of dollars across the state to support our critical transportation infrastructure needs," Muoio said to NJ.com.
The gas tax is earmarked for the Transportation Trust Fund, which helps finance the state’s highway and rail projects. As of last January, New Jersey's gas tax ranked eighth highest in the country, according to the Tax Foundation. The increase will keep New Jersey among the top 10 states with the highest tax on gasoline in the country.
The national average for a gallon of gas is $3.05, higher than New Jersey's average of $2.98, according to AAA.