What Changes for New Jersey in 2026: Higher Wages, Higher Tolls, and New Laws

The new year will bring a mixed bag for New Jersey residents: higher wages for the lowest-paid workers, but also higher costs for commuters filling their gas tanks and passing through toll plazas.

Here is what changes when the calendar turns to 2026.

Minimum Wage Goes Up

Effective January 1, the statewide minimum wage rises by 43 cents to $15.92 per hour for most employees. It is the final scheduled increase under Governor Phil Murphy, who made raising the minimum wage a signature initiative when he took office in 2018.

Since then, New Jersey’s minimum wage has increased by $7.32 per hour. The state was among the first to commit to a $15 floor, and the minimum wage is now tied to inflation, meaning future increases will be automatic based on Consumer Price Index data.

Seasonal workers and employees of small businesses will see their minimum rise to $15.23 per hour, an increase of 70 cents. Farm workers earning hourly wages will see their minimum climb to $14.20, while long-term care facility direct care staff will earn at least $18.92 per hour.

Tolls and Gas Tax Rise

Commuters will feel the pinch starting January 1 as well. The New Jersey Turnpike Authority has approved a 3 percent toll increase on both the Turnpike and the Garden State Parkway. Officials say the increase amounts to just a few cents for most drivers, though frequent commuters will notice the difference adding up.

Drivers crossing bridges between New Jersey and Pennsylvania face steeper increases. Eight bridges operated by the Delaware River Joint Toll Bridge Commission will raise rates, with E-ZPass users paying $2 (up 50 cents) and toll-by-plate customers paying $5 (up $2) for cars and SUVs.

The Port Authority of New York and New Jersey is also expected to raise tolls by 25 cents during the first week of January, pending a vote on the proposed increase.

And at the gas pump, the state gas tax increases by 4.2 cents per gallon to support the Transportation Trust Fund. The increase is part of a gradual series of hikes enacted in 2024 law, which raises the highway fuel cap through fiscal year 2029.

Unemployment and Disability Benefits

Workers who lose their jobs or face temporary disabilities will see higher maximum benefits. The maximum weekly unemployment insurance benefit rises to $905, up from $875. Temporary Disability and Family Leave Insurance benefits increase to $1,119 per week, while Workers’ Compensation temporary disability benefits rise to $1,199 per week.

New Department of Veterans Affairs

A new state Department of Veterans Affairs launches on January 9, splitting off from the existing Department of Military and Veterans Affairs. The new agency will focus exclusively on veteran-related matters, including housing, healthcare, mental health services, and benefits for veterans and their families. The original department will be renamed the Department of Military Affairs.

What It All Means

The changes reflect the ongoing tension in New Jersey between supporting workers and managing the high cost of living that has driven some residents to leave the state. Higher minimum wages put more money in the pockets of low-wage workers, but rising tolls and gas taxes add to the burden on commuters.

For the incoming Sherrill administration, balancing affordability concerns with the need for infrastructure investment and worker protections will be a central challenge. The governor-elect has already promised to freeze utility rate hikes on her first day in office, signaling that cost-of-living issues will be a priority.

As 2025 draws to a close and New Jersey prepares for a change in leadership, residents can count on at least one constant: nothing in the Garden State comes cheap.