Trenton, NJ – March 5, 2025 – As Governor Phil Murphy nears the end of his tenure, his administration’s fiscal policies have left a significant mark on New Jersey, characterized by multiple tax increases and toll hikes aimed at funding infrastructure, transit, and social programs. Since taking office in January 2018, Murphy has overseen at least 15 distinct tax increases on existing and new items, alongside several toll adjustments on major state roadways. With the proposed 2026 budget introducing additional revenue measures, residents and critics alike are reflecting on the cumulative impact of these changes under his leadership.
Tax Increases Under Murphy
Murphy’s administration has implemented or proposed a range of tax hikes, targeting both existing taxable categories and previously untaxed items. Here’s a breakdown of the key instances:
Existing Items (9 Times):
Millionaires Tax (2020) – Raised income tax on earnings over $1 million from 8.97% to 10.75%.
Corporate Business Tax Surcharge (2020) – Reinstated a 2.5% surcharge on corporate profits over $1 million.
Gas Tax (2018–2024) – Adjusted annually, with notable increases of 4.3 cents (2018), 2 cents (2019), 9.3 cents (2020), and a 2.6-cent hike in 2025 (part of a five-year plan through 2029).
Cigarette Tax (Proposed 2026) – Proposed increase from $2.70 to $3.00 per pack.
Alcohol Tax (Proposed 2026) – Proposed 10% increase on alcoholic beverages.
Internet Gaming and Sports Betting Taxes (Proposed 2026) – Proposed hikes from 15% to 25% (internet gambling) and 13% to 25% (sports betting).
Realty Transfer Fee (Proposed 2026) – Proposed increases from 1% to 2% for homes between $1 million and $2 million, and to 3% for sales over $2 million.
Cannabis Social Equity Excise Fee (Proposed 2026) – Proposed rise from $2.50 to $15 per ounce.
Vaping Liquid Tax (Proposed 2026) – Proposed increase from 10 cents to 30 cents per mL.
New Items (6 Times):
Corporate Transit Fee (2024) – Introduced a 2.5% fee on companies with over $10 million in annual net income for NJ Transit.
Electric Vehicle Registration Fee (2024) – Introduced an annual fee starting at $250, rising to $290 by 2028.
Warehouse Truck Traffic Fee (Proposed 2026) – Proposed $2 fee per truck trip.
Drone Tax (Proposed 2026) – Proposed excise tax on certain drones.
Intoxicating Hemp Products Tax (Proposed 2026) – Proposed $30 per ounce tax.
Newly Taxable Services (Proposed 2026) – Proposed sales tax on services like laser tag, bowling, and massage therapy.
These measures, totaling at least 15, reflect Murphy’s strategy to bolster state revenue amid economic challenges and infrastructure needs. Critics, particularly Republicans, argue that the burden falls heavily on businesses and middle-class residents, despite Murphy’s emphasis on affordability.
Toll Increases Under Murphy’s Leadership
In addition to tax hikes, tolls on New Jersey’s major roadways have risen multiple times during Murphy’s tenure, often tied to funding the Transportation Trust Fund (TTF) and NJ Transit. Below are the documented increases:
- 2020 Toll Hike (Approved Pre-Murphy, Implemented Under His Watch)
- New Jersey Turnpike and Garden State Parkway: Increased by 36% and 27%, respectively, as part of a 2020 plan approved under former Governor Chris Christie but enacted in September 2020. Average Turnpike toll rose from $3.50 to $4.80; Parkway from $1.50 to $1.90. Murphy allowed this pre-existing plan to proceed, citing infrastructure needs.
- 2023 Toll Hike New Jersey Turnpike and Garden State Parkway: Increased by 3% on January 1, 2023, adding roughly 15 cents to the average trip (Turnpike to $4.95, Parkway to $1.96). Murphy initially vetoed a proposed 3% hike in October 2023 but allowed this earlier increase.
- 2024 Toll Hike New Jersey Turnpike and Garden State Parkway: Increased by 3% on January 1, 2024, raising average costs by about 15 cents (Turnpike to $5.10, Parkway to $2.02).
- Atlantic City Expressway: Also rose by 3%, adding 12 cents to the average toll (from $4.01 to $4.13).
- 2025 Toll Hike New Jersey Turnpike, Garden State Parkway, and Atlantic City Expressway: Increased by 3% on January 1, 2025, adding an average of 16 cents per trip (Turnpike to $5.25, Parkway to $2.08, Expressway to $4.25).
This hike aligns with the TTF’s revenue goals under Murphy’s 2024 reauthorization.
Context and Controversy
Murphy’s administration defends these increases as necessary to modernize transportation infrastructure and support NJ Transit, which faced a $900 million fiscal cliff in 2024. The gas tax adjustments, tied to a 2016 law but accelerated under Murphy, and the new Corporate Transit Fee are highlighted as key funding mechanisms. However, the toll hikes—totaling four significant adjustments since 2020—have drawn ire from commuters and lawmakers, especially given Murphy’s opposition to New York’s congestion pricing while raising costs at home.
Republicans, including Assemblymember Nancy Munoz, have criticized Murphy for “killing affordable public transit” and burdening residents with higher costs. Meanwhile, transit advocates praise the dedicated funding but question its long-term stability. Posts on X reflect public frustration, with users like @AWokeZombie
calling out the “fraud” of opposing external tolls while taxing New Jerseyans.
Looking Ahead
With Murphy’s term ending in January 2026, his fiscal legacy—marked by at least 15 tax increases and four toll hikes—will be a central issue in the 2025 gubernatorial race. The proposed 2026 budget, with $1.2 billion in new taxes and fees, awaits legislative approval by June 30, 2025, potentially adding to this tally. As New Jersey braces for federal funding uncertainties under a new Trump administration, the debate over Murphy’s tax-and-toll approach continues to intensify.