New Jersey's gas tax climbing by nearly 3 cents starting on New Year's Day
Starting New Year's Day, filling up your vehicle's gas tank in New Jersey will cost an extra 2.6 cents per gallon.
Democratic Gov. Phil Murphy's administration said Monday the state's gas tax will climb about 6% to 44.9 cents a gallon.
The change stems from a review required by a new law to support the state's transportation infrastructure fund through 2029.
State Treasurer Elizabeth Maher Muoio said the law requires the tax on petroleum products to be adjusted to meet the revenue requirement, a statutory target of about $2 billion.
The increase would keep New Jersey among the top 10 or so states with the highest tax on gasoline in the country, according to the nonprofit Tax Foundation.
The tax rate can go up or down under the law. Under the previous transportation trust fund legislation, the rate was evaluated every summer and went up less than a penny last year. The year before, it dropped by a penny, while it decreased by 8.3 cents in 2021.
According to AAA, the national average for a gallon of gas is $3.05, higher than New Jersey's average of $2.98.