The NJ gas tax is 49.1 cents per gallon on gasoline and 56.1 cents per gallon on diesel as of January 1, 2026.1NJ.gov. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents Both rates went up 4.2 cents from the year before. The number resets every January under a formula tied to a road-funding revenue target, so the amount at the pump rarely stays the same two years running.
Current Rates at the Pump
Every gallon of gasoline sold in New Jersey carries a combined state tax of 49.1 cents. Diesel is taxed at 56.1 cents per gallon, reflecting the heavier wear that trucks put on pavement.1NJ.gov. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents
Specialty fuels are taxed on their own schedules. Aviation fuel is 2 cents per gallon.2Division of Taxation. Division of Taxation – Excise Rates Liquefied petroleum gas used on highways is taxed at half the gasoline rate, or 5.25 cents per gallon.3Justia. New Jersey Code 54:39-103 – Tax Imposed on Fuel Used, Consumed in State
What the Rate Is Actually Made Of
What looks like one tax is two stacked together.
The first piece is the Motor Fuels Tax, a fixed excise set by statute at 10.5 cents per gallon on gasoline and 13.5 cents on diesel.3Justia. New Jersey Code 54:39-103 – Tax Imposed on Fuel Used, Consumed in State This piece does not move.
The second and larger piece is the Petroleum Products Gross Receipts Tax, or PPGRT. It technically applies to the gross receipts of the companies that first sell petroleum products in the state, but it gets converted to a per-gallon amount and passed along at the pump. As of January 2026, the PPGRT portion is 38.6 cents on gasoline and 42.6 cents on diesel.1NJ.gov. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents The PPGRT is the piece that shifts each year.
Why the Rate Changes Each Year
New Jersey law sets a specific revenue target, called the highway fuel cap, that fuel taxes must hit each fiscal year. For fiscal year 2026, the target is $2.115 billion.4Justia. New Jersey Code 54:15B-3 – Petroleum Products Tax
On or before November 15 each year, the State Treasurer meets with the Legislative Budget and Finance Officer to review how much revenue fuel taxes actually generated and to project whether current consumption will meet next year’s target.1NJ.gov. Treasury Announces Gas Tax Rate Will Increase by 4.2 Cents If collections fell short, the PPGRT rate goes up. If they came in over, it goes down. The new rate takes effect the following January 1.4Justia. New Jersey Code 54:15B-3 – Petroleum Products Tax
That is why the tax has climbed as vehicles have grown more fuel-efficient. The state needs the same amount of money regardless of how many gallons drivers burn, so the per-gallon rate absorbs the gap. The 4.2-cent increase that took effect in January 2026 followed a shortfall against the cap.
Where the Money Goes
Every cent collected through the Motor Fuels Tax and the PPGRT is constitutionally dedicated to transportation. A 2016 amendment to the New Jersey Constitution blocks the legislature from redirecting the money to the general budget.5New Jersey Transportation Trust Fund Authority. New Jersey Transportation Trust Fund Authority – Legislation The revenue flows to the Transportation Trust Fund Authority, which finances road repaving, bridge repairs, and public transit including rail and bus systems. A slice of the state Sales and Use Tax is earmarked for the same fund.6New Jersey Transportation Trust Fund Authority. New Jersey Transportation Trust Fund Authority – Flow of Funds
The Federal Tax on Top
The state tax is not the only levy in the pump price. The federal government adds 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, including a 0.1-cent surcharge for the Leaking Underground Storage Tank Trust Fund.7Office of the Law Revision Counsel. 26 USC 4081 – Imposition of Tax Federal rates have not changed since 1993.
Add the two layers together and a New Jersey driver pays roughly 67.5 cents in taxes on each gallon of regular gasoline and about 80.5 cents on each gallon of diesel. A 15-gallon fill-up carries just over $10 in combined taxes before the base cost of the fuel.
The Annual Fee for Electric Vehicles
Drivers who never visit a pump still pay into the same system. New Jersey charges owners of zero-emission vehicles an annual fee, collected by the Motor Vehicle Commission at registration and each renewal, as a substitute for the gas tax they don’t pay.8New Jersey Motor Vehicle Commission. Registration and Title Fees
The fee started at $250 in July 2024 and rises $10 each July on a set schedule:9Justia. New Jersey Code 39:3-8.5 – Imposing, Collection of Annual Fees, Zero-Emission Vehicles, Registration
- July 2024 through June 2025: $250
- July 2025 through June 2026: $260
- July 2026 through June 2027: $270
- July 2027 through June 2028: $280
- July 2028 onward: $290, the permanent cap
The fee applies to any vehicle certified as a zero-emission vehicle under California Air Resources Board standards for its model year.8New Jersey Motor Vehicle Commission. Registration and Title Fees Plug-in hybrids with a gasoline engine that already pay tax at the pump are not subject to it.