Property taxes, gas taxes, tolls, oh my!
New Jersey’s roads are split between local, county, state, federal, and toll authorities
Tolls, state and federal fuel taxes, and federal, state, and local taxes are sources of revenue
Bonds are used to fund projects and maintenance
The Transportation Trust Fund is an important funding mechanism
New Jersey’s 39,000 lane‑mile road network is one of the most intensely used and most complexly funded in the United States. Unlike many states where a single transportation department owns the majority of road mileage, New Jersey’s system is fragmented across municipalities, counties, the state, federal‑aid interstates, and toll authorities. Each layer has its own funding mechanisms, revenue sources, and fiscal pressures.
Understanding how New Jersey pays for its roads requires examining who owns the network, where the money comes from, how much each source generates, and how those dollars are distributed. At the center of this system is the Transportation Trust Fund (TTF)—a uniquely New Jersey institution that shapes nearly every major transportation investment in the state.
Who maintains New Jersey’s roads?
New Jersey’s road network is overwhelmingly local. Municipalities and counties own 86% of all roadway mileage, while the state, federal‑aid interstates, and toll authorities manage the remainder.
Road Mileage Share by Ownership
| Road Type | Share of NJ Mileage |
| Local roads (municipal) | ~64% |
| County roads | ~22% |
| State highways (NJDOT) | ~9% |
| Interstates (federal‑aid) | ~2% |
| Toll roads (NJTA + SJTA) | ~3% |
This distribution is crucial: the governments with the least fiscal capacity (municipalities and counties) are responsible for the largest share of the network.
Who funds New Jersey’s roads?
New Jersey’s road‑funding system relies on five major revenue streams. Each source is structured differently and supports different parts of the network.
Property Taxes (Municipal + County)
Used for: Local and county roads
Annual road‑related spending: $2.7B–$3.5B
Property taxes fund the majority of New Jersey’s road mileage. Municipalities and counties use their general funds—primarily property tax revenue—to pay for resurfacing, snow removal, drainage, signage, and local bridges.
- Municipal road spending: $1.6B–$2.1B
- County road spending: $1.1B–$1.4B
Most municipalities spend 5–12% of their total budget on roads.
Transportation Trust Fund (TTF)
Used for: State highways, NJDOT local aid, interstate match, NJ Transit capital
Total annual resources: $3.5B–$4.0B
How the TTF is funded
| TTF Revenue Source | Annual Amount |
| Gas tax (PPGRT) | $1.9B–$2.1B |
| EV fees | $25M–$40M |
| Bonding authority | Up to $1.76B/year |
| State appropriations | $0–$200M |
Of the total TTF resources, $2.0B–$2.4B supports state highways and local aid.
The Transportation Trust Fund (TTF) was created in 1984 after years of underinvestment left the state with deteriorating roads, structurally deficient bridges, and no stable funding source for capital projects. Before the TTF, New Jersey funded transportation through annual appropriations—an unstable, politically fraught process that led to deferred maintenance and unpredictable project pipelines. The TTF was designed to create a dedicated, reliable revenue stream, allow long‑term capital planning, reduce reliance on annual budget fights, and support both NJDOT and NJ Transit capital. The TTF’s statutory mission is to fund state highway and bridge projects, provide local aid to counties and municipalities, fund NJ Transit capital improvements, and service debt on transportation bonds.
Due to inflation, an aging road network, and increased state population, the TTF has faced chronic challenges. By 2016, every dollar of gas tax revenue was going to debt service, leaving no cash for new projects. A major gas tax increase in 2016 and a second increase in 2020 stabilized the fund. The 2024 reauthorization provides $10.37B in capital spending over five years.
Today, the TTF is stable but heavily reliant on bonding. Roughly 40–50% of its annual resources come from new debt issuance. Still, it remains the essential engine behind New Jersey’s transportation system.
Federal Highway Funds (FHWA)
Used for: Interstates, major state projects, bridges
Annual funding to NJ: $1.2B–$1.4B
Federal dollars come from the federal gas tax and flow through formula programs such as NHPP, STBGP, HSIP, and CMAQ.
- $700M–$1.0B supports interstates
- The remainder supports state highways and bridges
The Federal Highway Administration (FHWA), formally created in 1966, grew out of early federal‑aid road programs and became central to national transportation policy with the 1956 Federal‑Aid Highway Act, which launched the Interstate Highway System and established the Highway Trust Fund. FHWA’s mission is to provide financial and technical support to states for building, maintaining, and improving major highways, bridges, and safety infrastructure. Through formula programs like NHPP and STBGP, FHWA delivers $1.2–$1.4 billion annually to New Jersey, including $700 million to $1 billion for interstate highways. Today, FHWA remains essential but financially strained: the federal gas tax has not increased since 1993, fuel efficiency has eroded revenue, and the Highway Trust Fund requires repeated general‑fund infusions to stay solvent. Even so, FHWA continues to anchor New Jersey’s capital program, underwriting the state’s most heavily traveled corridors and enabling long‑term investment.
Tolls (NJTA + SJTA)
Used for: Turnpike, Parkway, Atlantic City Expressway
Annual toll revenue: $2.7B–$2.8B
Toll roads are financially self‑contained. They receive:
- No gas tax revenue
- No property tax revenue
- No state budget dollars
The New Jersey Turnpike Authority (NJTA) and the South Jersey Transportation Authority (SJTA) operate the state’s three major toll highways—the New Jersey Turnpike, Garden State Parkway, and Atlantic City Expressway—and together form one of the most financially self‑sustaining transportation systems in the country. Created in 1948 and 1991 respectively, the two authorities are independent, revenue‑backed agencies whose operations, maintenance, and capital programs are funded almost entirely through tolls and toll‑supported bonds, not state taxes or the Transportation Trust Fund. The NJTA generates roughly $2.5 billion annually, while the SJTA brings in about $200–$250 million, with a significant share of this revenue coming from out‑of‑state drivers, especially freight carriers and long‑distance travelers using the Turnpike as a Northeast corridor through‑route. Because of this, toll roads function as a mechanism for shifting roadway costs onto non‑residents, reducing the burden on New Jersey taxpayers while supporting some of the state’s most heavily traveled infrastructure.
Other Local Sources
Used for: Local and county roads
Annual revenue: $80M–$230M
Includes developer impact fees, local capital bonds, and stormwater utility fees.
Annual Spending by Road Type
| Road Type | Annual Spending |
| Local roads | $1.6B–$2.1B |
| County roads | $1.1B–$1.4B |
| State highways | $2.0B–$2.4B |
| Interstates | $0.7B–$1.0B |
| Toll roads | $2.7B–$2.8B |
| Total statewide road spending | $7.2B–$10.7B |
Funding Mix and Dollar Amounts by Road Type
Local Roads (64% of mileage)
| Funding Source | % | Amount |
| Property taxes | 70–85% | $1.1B–$1.7B |
| TTF Municipal Aid | 10–20% | $160M–$400M |
| Federal grants | 0–10% | $0–$200M |
| Other | 0–5% | $0–$100M |
| Total annual spending | $1.4B–$2.0B |
County Roads (22% of mileage)
| Funding Source | % | Amount |
| County property taxes | 60–75% | $660M–$1.05B |
| TTF County Aid | 15–25% | $165M–$350M |
| Federal bridge funds | 5–15% | $55M–$210M |
| County bonds | 0–10% | $0–$140M |
| Total annual spending | $0.9B–$1.7B |
State Highways (9% of mileage)
| Funding Source | % | Amount |
| TTF | 55–65% | $1.1B–$1.6B |
| Federal funds | 35–45% | $700M–$1.0B |
| General fund | 0–5% | $0–$120M |
| Total annual spending | $1.7B–$2.7B |
Interstates (2% of mileage)
| Funding Source | % | Dollar Amount |
| Federal funds | 70–90% | $490M–$900M |
| State match (TTF) | 10–30% | $70M–$300M |
| Total annual spending | $0.6B–$1.2B |
Toll Roads (3% of mileage)
| Funding Source | % | Dollar Amount |
| Tolls | 85–95% | $2.3B–$2.7B |
| Toll‑backed bonds | 5–15% | $135M–$420M |
| State/federal funds | 0% | $0 |
| Total annual spending | $2.4B–$3.1B |
Conclusion
New Jersey’s road‑funding system is a study in contrasts: a local network funded by property taxes, a state system powered by the Transportation Trust Fund, a federally supported interstate system, and a toll network that operates as a self‑contained financial ecosystem—one that shifts a significant share of costs onto out‑of‑state drivers.
Understanding these dynamics is essential for evaluating policy proposals, assessing equity, and planning long‑term infrastructure investments in one of the nation’s most heavily traveled states.
Source:
New Jersey Department of Transportation. (2024). Transportation Trust Fund Authority: FY2025–FY2029 reauthorization summary. https://www.state.nj.us/ttfa/
New Jersey Office of Legislative Services. (2024). Fiscal estimate for the Transportation Trust Fund reauthorization. https://www.njleg.state.nj.us/
New Jersey Department of Transportation. (2023). Transportation Trust Fund annual financial statements. https://www.state.nj.us/transportation/finance/
New Jersey Department of Transportation. (2024). FY2025 Capital Program. https://www.state.nj.us/transportation/capital/
New Jersey Department of Transportation. (2023). NJDOT annual capital investment strategy. https://www.state.nj.us/transportation/capital/stip/
Federal Highway Administration. (2023). Highway Statistics Series: Table HM‑10 (Road ownership by state). https://www.fhwa.dot.gov/policyinformation/statistics.cfm
Federal Highway Administration. (2023). Highway Statistics Series: State highway finance tables. https://www.fhwa.dot.gov/policyinformation/statistics.cfm
Federal Highway Administration. (2023). National Highway Performance Program (NHPP) guidance. https://www.fhwa.dot.gov/specialfunding/nhpp/
Federal Highway Administration. (2023). FAST Act and IIJA apportionment tables. https://www.fhwa.dot.gov/fastact/
New Jersey Department of Community Affairs. (2024). User‑Friendly Budget database (municipal budgets). https://www.nj.gov/dca/divisions/dlgs/resources/ufb/
New Jersey Association of Counties. (2023). County transportation infrastructure overview. https://njac.org/
Somerset County, New Jersey. (2024). Capital budget and road program. https://www.co.somerset.nj.us/
New Jersey Turnpike Authority. (2024). Annual financial report. https://www.njta.com/
South Jersey Transportation Authority. (2024). Annual report. https://www.sjta.com/
New Jersey Department of the Treasury. (2024). Petroleum Products Gross Receipts Tax rate history and revenue reports. https://www.state.nj.us/treasury/taxation/
New Jersey Motor Vehicle Commission. (2024). Electric vehicle surcharge information. https://www.state.nj.us/mvc/
New Jersey Office of Legislative Services. (1984–2024). Transportation Trust Fund Authority Act legislative history. https://www.njleg.state.nj.us/
New Jersey Department of Transportation. (2020). History of the Transportation Trust Fund. https://www.state.nj.us/transportation/finance/ttf/
Congressional Research Service. (2023). The Federal Highway Trust Fund: Structure and status. https://crsreports.congress.gov/
U.S. Department of Transportation. (2023). Highway Trust Fund fact sheets. https://www.transportation.gov/
