Toll Refunds Could Be Coming To NJ Commuters: How Much You Could Get

NEW JERSEY — Lawmakers on both sides of the aisle in Trenton are looking to give commuters an income tax write-off for the E-ZPass tolls they pay on New Jersey highways.

The state legislature is back in session as of this week, and members have a number of bills to consider as they head back to the statehouse — including four proposals aimed at providing tax relief to people who frequently drive on toll roads. Another bill would waive E-ZPass tolls for vehicles used by a businesses that are owned by a disabled veteran.

Commuters have faced multiple toll hikes in recent years, including this year's increase on the New Jersey Turnpike and Garden State Parkway. The state's gas tax also increased this year, by nearly 2 cents per gallon.

Here is a look at five different proposals that would give drivers some relief on the tolls they pay:

1. Legislators in the Senate and Assembly are proposing up to $1,000 in state income tax deductions for those who use E-ZPass accounts on New Jersey toll roads. A bipartisan Senate proposal (S520) is sponsored by state senators Patrick Diegnan (D-NJ-18) and James Holzapfel (R-NJ-10), and would apply to all in-state toll roads — as well as any bridge or tunnel connecting to New Jersey.

"This bill is intended to assist individuals in offsetting the considerable expenses associated with commuting, which have been aggravated by the recent increase in the State gasoline tax rate," the sponsors wrote.

2. Assemblyman Gregory McGuckin (R-NJ-10) sponsored a version of this bill (A764) in the other chamber. Under McGuckin's proposal, drivers would be able to deduct tolls paid on the Turnpike, the Parkway, and the Atlantic City Expressway.

Toll-paying commuters "are paying more than their fair share for transportation and economic development," McGuckin's bill statement says, noting that revenue is often diverted to projects outside of all road maintenance.

3. Another bill (A2600) would allow Garden State residents to deduct 50 percent of the amount they paid through electronic tolling systems on New Jersey Turnpike Authority roads (the Turnpike and Parkway). This bill's main sponsor is Assemblyman Robert Karabinchak (D-NJ-18).

4. There is also a measure to create a $250 million "toll relief fund" for both the New Jersey Turnpike Authority and South Jersey Transportation Authority. This proposal (A830/S514) would refund 50 percent of tolls paid back to the driver's E-ZPass account, but only for one year, and it does not apply to tolls paid crossing the Hudson or Delaware Rivers.

In the Assembly, the bill is sponsored by by McGuckin and Paul Kanitra (R-NJ-10), and by Holzapfel in the Senate.

5. Finally, Sen. Nilsa Cruz-Perez (D-NJ-5) has proposed a measure requiring the NJTA and SJTA to have an E-ZPass toll waiver program for vehicles used by disabled veteran-owned businesses. Under this bill (S2755), vehicles owned, leased, or financed by a disabled veteran — and used by a qualifying business — would be eligible, provided the vehicle is registered in New Jersey and the company does business in the state.

The above-mentioned bills were all introduced in January or February 2024. All are awaiting a hearing before the Assembly Transportation and Independent Authorities Committee or the Senate Budget and Appropriations Committee.

Lawmakers have tried to pass similar measures in the past, with versions of Holzapfel's income tax deduction proposal dating back to the 2016/2017 legislative session.

Massachusetts is the only state that currently allows tax deductions for certain tolls and transit fees.