Why Is Gas So Expensive at the Jersey Shore? New Jersey's Gas Tax Explained
Derek Doernbach, Realtor®
Published September 27, 2026
Updated September 27, 2026
I recently saw on Facebook that a friend paid $3.83 per gallon at a Wawa in Florida. Meanwhile, drivers at the Jersey Shore may see prices well above $4. Is New Jersey's gas tax the reason for the difference?
Taxes contribute to what we pay, but one station's price does not represent an entire state. According to AAA, the average price of regular gas on September 27, 2026, was $4.38 in New Jersey and $4.37 in Florida—a difference of about one cent per gallon. The $3.83 price came from my friend's Facebook post; I have not independently verified that station's price.
How much is New Jersey's gas tax?
New Jersey's state gasoline tax totals 49.1 cents per gallon in 2026:
| New Jersey tax component | Amount per gallon |
|---|---|
| Motor Fuels Tax | 10.5¢ |
| Petroleum Products Gross Receipts Tax | 38.6¢ |
| Total New Jersey gasoline tax | 49.1¢ |
The federal gasoline tax adds 18.4 cents per gallon. Combined, those state and federal taxes amount to 67.5 cents per gallon on gasoline purchased in New Jersey.
These are amounts per gallon, not percentages of what you spend. The taxes are built into the pump price rather than added as a separate sales-tax line at checkout.
New Jersey adjusts the petroleum products portion under a statutory formula connected to funding its Transportation Trust Fund program. The state gasoline tax increased 4.2 cents per gallon at the start of 2026.
If I spend $40 on gas, does $20 go to taxes?
No. At New Jersey's September 27 statewide average of about $4.38 per gallon, $40 buys approximately 9.13 gallons. Here is an approximate breakdown:
| Part of the $40 purchase | Amount |
|---|---|
| New Jersey gasoline tax | $4.48 |
| Federal gasoline tax | $1.68 |
| Other parts of the pump price | $33.84 |
| Total paid | $40.00 |
You receive the full 9.13 gallons. Approximately $6.16 of the $40 price represents those state and federal per-gallon taxes—not $20. The rest covers other elements of the pump price, including fuel, refining, transportation, and retail costs.
These figures are rounded estimates based on the statewide average, not an itemized receipt from a particular station.
What are gas prices at the Jersey Shore?
AAA reported these regional averages for regular gasoline on September 27, 2026:
| Area | Average per gallon |
|---|---|
| Cape May area | $4.54 |
| Monmouth–Ocean area | $4.38 |
| Atlantic City area | $4.37 |
| New Jersey statewide | $4.38 |
These are regional averages, not the price at every station in Cape May, Ocean City, Atlantic City, or another Shore town. Cape May's regional average was approximately 17 cents higher than Atlantic City's, although both areas have the same New Jersey state gasoline tax. Tax alone cannot explain that regional price difference.
Is gas cheaper in Florida?
The $3.83 per gallon price I saw in my friend's Facebook post was substantially lower than both states' averages. However, AAA's Florida statewide average was $4.37 on September 27, nearly identical to New Jersey's $4.38.
Florida has more than one fuel-tax component. Its 2026 system includes statewide and county fuel taxes, so comparing only Florida's 22-cent state component with New Jersey's complete 49.1-cent state rate would be misleading. The applicable Florida total depends in part on the county.
How does New Jersey compare with other states?
AAA reported these statewide averages for regular gasoline on September 27, 2026:
| State | Average per gallon |
|---|---|
| Texas | $3.93 |
| Mississippi | $4.01 |
| North Carolina | $4.15 |
| Virginia | $4.23 |
| Delaware | $4.35 |
| Florida | $4.37 |
| New Jersey | $4.38 |
| Pennsylvania | $4.54 |
The national average was $4.48. New Jersey was below both the national average and Pennsylvania that day, although it was more expensive than Texas and Mississippi.
Why do stations and states have different prices?
The U.S. Energy Information Administration explains that pump prices include the cost of crude oil, refining, taxes, distribution, and marketing. Transportation costs, supply disruptions, local competition, and station operating costs can also affect the final price.
That is why a $3.83 report from one Florida Wawa can coexist with a $4.37 Florida statewide average. It is also why two stations at the Jersey Shore may post different prices despite being subject to the same New Jersey gasoline tax.
Frequently asked questions
How much is New Jersey’s gas tax in 2026?
New Jersey’s state gasoline tax is 49.1 cents per gallon: a 10.5-cent Motor Fuels Tax plus a 38.6-cent Petroleum Products Gross Receipts Tax. The federal gasoline tax adds 18.4 cents per gallon.
Does that mean half of a $40 fill-up goes to taxes?
No. The tax is measured in cents per gallon, not as a percentage of your payment. At about $4.38 per gallon, $40 buys approximately 9.13 gallons. Roughly $4.48 represents New Jersey gasoline tax and $1.68 represents federal gasoline tax.
Is gas cheaper in Florida than in New Jersey?
It depends on the station and the day. On September 27, 2026, AAA’s statewide regular-gas averages were approximately $4.37 in Florida and $4.38 in New Jersey. The $3.83 Florida Wawa price mentioned in this article came from a friend’s Facebook post about one station and has not been independently verified.
Why can two nearby gas stations charge different prices?
Stations can have different supply costs, operating expenses, and nearby competition. Their prices can also change at different times. A regional or statewide average will not match every station’s posted price.
The takeaway
New Jersey's state gasoline tax is 49.1 cents per gallon in 2026. It adds to the cost of a fill-up, but it does not mean half your money goes to taxes, and it does not determine every station's price. When planning a Shore drive, commute, or road trip, compare prices at actual stations and check when each price was observed.
Gas prices change frequently. All AAA comparisons in this article are averages for regular gasoline as of September 27, 2026, rounded to the nearest cent. The $3.83 Florida Wawa price appeared in a friend's Facebook post and has not been independently verified.
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