5 New Jersey Laws Taking Effect on January 1st

Here are five of the most significant new laws and changes taking effect in the Garden State this January.

1. 2026 Minimum Wage Increase ($15.92)

New Jersey continues its annual inflation-based adjustments to the State minimum wage. While the state reached its $15.00 goal in 2024, a constitutional amendment ensures the rate keeps pace with the Consumer Price Index (CPI).

• The New Rate: Starting January 1, the statewide minimum wage increases by 43 cents to $15.92 per hour for most employees.
• Small & Seasonal Employers: For businesses with fewer than six employees and seasonal workers, the rate rises to $15.23 per hour.
• Tipped Workers: The base cash wage for tipped employees increases to $6.05 per hour. Employers must still ensure that the combination of base wage and tips equals at least the $15.92 standard.

2. Highway Fuel Tax Increase (+4.2 Cents)

Motorists will see a price jump at the pump on New Year's Day due to a scheduled adjustment in the State Petroleum Products Gross Receipts Tax.

• The Adjustment: To meet the statutory funding targets for the State Transportation Trust Fund, the "gas tax" is increasing by 4.2 cents per gallon.
• New Totals: This brings the total tax rate (including the fixed Motor Fuels Tax) to 49.1 cents per gallon for gasoline and 56.1 cents per gallon for diesel. The revenue is earmarked explicitly for repairs to New Jersey's bridges and roadways.

3. Toll Hikes on NJ Turnpike and GSP

Commuters will face higher costs on the State major toll roads starting January 1. The New Jersey Turnpike Authority is moving forward with an annual "indexing" plan to fund its capital improvement program.

• The Increase: Tolls on the New Jersey Turnpike and the Garden State Parkway are set to increase by 3%.
• Additional Crossings: Commuters should also be aware that Port Authority crossings (such as the George Washington Bridge and the Lincoln Tunnel) and Delaware River Joint Toll Bridge Commission crossings are implementing scheduled rate hikes throughout early January.

4. Small Business Tax Relief (QSBS Exclusion)

In a significant win for the State startup ecosystem, New Jersey is officially conforming to federal tax rules regarding Qualified Small Business Stock (QSBS) starting January 1, 2026.

• The Benefit: Investors and founders who sell eligible stock in small businesses can now exclude a significant portion (or all) of their capital gains from New Jersey's gross income tax.

  
  
  

• Economic Impact: Previously, New Jersey was one of the few states that did not recognize this federal exclusion. The change is intended to make the state more competitive for tech entrepreneurs and venture capital investment.

5. Ban on PFAS "Forever Chemical" Firefighting Foam

While it takes effect a few days into the year (January 8, 2026), this significant environmental law forces a major shift in safety protocols across the state.

• The Ban: The sale, manufacture, and use of Class B firefighting foam containing intentionally added PFAS (per- and polyfluoroalkyl substances) is now prohibited.
• The Transition: Fire departments and industrial facilities must switch to fluorine-free alternatives. The state has also established a collection and disposal program to help local departments safely get rid of their existing stocks of "forever chemical" foam.

Additional 2026 Outlook

Beyond these shifts, New Jersey is also implementing new Pay Transparency requirements for job advertisements. Employers with 10 or more employees are now required to include a good-faith salary range and a general description of benefits in all job postings to help close the gender and racial wage gap.