The New Jersey gas tax is 49.1 cents per gallon on gasoline and 56.1 cents per gallon on diesel as of January 1, 2026. Both rates climbed 4.2 cents from the prior year after the State Treasurer determined that fuel-tax revenue had fallen short of the state’s infrastructure funding target.1Department of the Treasury. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Effective January 1, 2026 Add the federal excise tax and the total government levy reaches 67.5 cents on a gallon of regular gas and 80.5 cents on diesel.
The Two Taxes Behind the Pump Price
Two separate state taxes combine into the per-gallon figure. The Motor Fuels Tax under N.J.S.A. 54:39-101 is a flat excise that has not moved in years: 10.5 cents on gasoline and 13.5 cents on diesel.1Department of the Treasury. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Effective January 1, 2026
The larger piece is the Petroleum Products Gross Receipts Tax (PPGRT) under N.J.S.A. 54:15B-3, the variable component the state adjusts each year. For 2026, the PPGRT is 38.6 cents on gasoline and 42.6 cents on diesel.1Department of the Treasury. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Effective January 1, 2026 Legally, the PPGRT falls on refiners and distributors at the point of first sale, but the cost passes straight through to the price on the pump display.
New Jersey does not apply its 6.625 percent sales tax to motor fuel, so these excises are the only state charges built into what you pay.
Federal Tax on Every Gallon
Each gallon also carries a federal excise tax that funds the national Highway Trust Fund: 18.4 cents on gasoline and 24.4 cents on diesel, including a 0.1-cent Leaking Underground Storage Tank surcharge.2Office of the Law Revision Counsel. 26 USC 4081 Imposition of Tax The federal rates have been fixed since 1993 and are scheduled to drop to 4.3 cents per gallon after September 30, 2028 unless Congress acts.
The full 2026 tax burden per gallon in New Jersey:
- Gasoline: 49.1 cents state plus 18.4 cents federal, for 67.5 cents total.
- Diesel: 56.1 cents state plus 24.4 cents federal, for 80.5 cents total.
Why the Rate Keeps Going Up
The PPGRT does not stay constant because New Jersey ties it to a revenue target called the Highway Fuel Cap. The formula set by P.L. 2024, Chapter 7 calls for escalating caps through fiscal year 2029. The FY 2026 cap is $2.115 billion and climbs to $2.366 billion by FY 2029.1Department of the Treasury. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Effective January 1, 2026
Each November, the State Treasurer and the Legislative Budget and Finance Officer review actual fuel-tax collections from the prior fiscal year. A shortfall carries forward and is added to the next year’s target; a surplus reduces it. The Treasurer then calculates a PPGRT rate designed to hit the adjusted cap given projected fuel consumption, and the new rate takes effect January 1.3Justia. New Jersey Revised Statutes Section 54-15B-3
The practical result is counterintuitive: the tax rises when people drive less or switch to electric vehicles, because fewer gallons sold means less revenue per penny of tax. The FY 2025 shortfall alone added $23.8 million to the FY 2026 cap, which drove the 4.2-cent hike.1Department of the Treasury. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Effective January 1, 2026 The mechanism removes an annual political fight from the process, but it also means per-gallon rates will keep climbing as overall consumption declines.
How New Jersey Stacks Up Against Other States
Before the 2026 bump, New Jersey already ranked eighth highest among all states for total state gas tax. Pennsylvania next door charges about 58.7 cents per gallon and sits in the top five. New York collects roughly 24.9 cents at the state level, ranking 37th. California leads the country at over 70 cents, and Alaska holds the bottom at around 9 cents.4Tax Foundation. 2025 Gas Taxes by State Fuel Taxes Map The January 2026 increase likely moves New Jersey a spot or two higher on that ranking.
Who Can Get the Tax Back
N.J.S.A. 54:39-112 exempts certain fuel uses from the Motor Fuels Tax or allows a refund after the fact. The common thread is fuel burned off public highways or used by specific public-interest groups. Qualifying uses include agricultural tractors not operated on public roads, other farm machinery, stationary equipment and vehicles not designed to carry people or property on public roads, ambulances and emergency vehicles used exclusively by volunteer first-aid or rescue squads, school buses operated by charitable organizations or under contract with a government agency, and buses that already pay a monthly municipal franchise tax for street use.5Justia. New Jersey Revised Statutes Section 54-39-112 – Exemptions From Tax
To collect a refund, you have to prove the New Jersey fuel tax was actually paid on the gallons you are claiming. That means keeping original sales slips or invoices showing the tax as a separate line item, along with records of how the fuel was used.
The refund process begins with Form GR-3, the Preliminary Refund Questionnaire, which registers you as a claimant and assigns a code number. After that, monthly refund claims go on Form A-3711-MF for gasoline or Form A-3766 for diesel.6New Jersey Division of Taxation. NJ Division of Taxation – Motor Fuel Tax Forms The deadline matters: individual consumers must file each monthly claim by the last business day of the sixth month after the purchase month. Fuel bought in January is due by the last business day of July, and missing that cutoff permanently forfeits the refund on those gallons.7Justia. New Jersey Revised Statutes Section 54-39-114 – Refund of Tax, Claims, Records Keep fuel consumption records for at least four years; the Division can request additional proof at any time, and refusal to cooperate forfeits the claim.
Electric Vehicle Drivers Pay a Different Fee
Electric vehicles contribute nothing through the gas tax, so New Jersey charges EV owners an annual registration surcharge instead. Effective July 1, 2026, the fee is $270 per year. It applies at registration and renewal, and dealerships collect it at point of sale for new vehicles. As the gas tax formula pushes per-gallon rates higher in response to shrinking fuel sales, the EV fee funnels into the same Transportation Trust Fund.