Big changes are coming to one of South Jersey’s busiest highways — and your wallet will feel it. Starting in 2026, drivers on the Atlantic City Expressway will face two new price hikes: a 3% toll increase for all users, plus a brand-new fee aimed at those who skip E-ZPass. But here’s where it gets even more interesting — this road is also becoming New Jersey’s first fully cashless tollway. And that shift could redefine how the entire state handles tolls in the near future.
The South Jersey Transportation Authority (SJTA) officially approved both the 3% toll hike and a new toll-by-plate system during its Wednesday board meeting. Alongside these measures, the board also signed off on a $118 million operating budget for 2026 and an additional $42 million earmarked for capital projects. According to SJTA spokesperson Kimberly Tesla, both the rate increase and the new plate-based billing system will take effect on January 4, 2026.
What drivers can expect
Here’s how it breaks down: those using E-ZPass will pay $6.30, but drivers who opt for the toll-by-plate option — where cameras photograph the license plate and mail a bill to the vehicle’s owner — will be charged $13.60. That’s more than twice the E-ZPass rate. The higher cost helps cover the expenses of processing, billing, and maintaining the new electronic system. In other words, paying with E-ZPass saves both time and money.
This digital shift marks the first time a state toll road in New Jersey will go entirely cashless. Construction crews are finishing a $30.59 million project that includes installing tolling frames equipped with electronic sensors at 11 locations along the Expressway and dismantling the old toll plazas. Once complete, the Atlantic City Expressway will serve as a test case for the eventual elimination of cash tolls on both the Garden State Parkway and the much busier New Jersey Turnpike.
Why tolls keep rising
The 3% toll increase isn’t random. It follows a policy adopted in March 2020 that ties annual toll hikes to the Consumer Price Index (CPI) — basically, a way to adjust for inflation automatically. Since that policy began, tolls on the Expressway have risen five times. The cumulative impact is a staggering 52% increase between 2020 and 2026. For comparison, the Turnpike, Parkway, Port Authority bridges and tunnels, and the Delaware River Joint Bridge Commission are also planning or approving similar rate increases for next year.
Back in 2020, tolls jumped a massive 37% in a single year. Many commuters have complained that frequent hikes are pricing them out of travel along these key routes. Supporters of the increases argue that it’s necessary to maintain infrastructure and fund capital improvements — though not everyone agrees with how those funds are allocated.
Where the money goes
The SJTA’s $42 million capital budget includes funding for repairs and modernizations across multiple sectors. Major priorities include upgrades at the Atlantic City International Airport, structural improvements on several bridges, and general maintenance to keep facilities in a state of good repair. The cashless toll installation itself faced delays earlier in 2025 when officials decided to postpone summer construction to avoid traffic disruptions during peak tourist season.
What this means for the future
As of October, roughly 91% of Expressway drivers already use E-ZPass — meaning only a small fraction will be directly affected by the new toll-by-plate rates. Still, for occasional drivers or out-of-state visitors, the new system could be a surprise. The policy resembles ones already in place from the Port Authority and other regional tolling bodies, which charge higher rates to non-E-ZPass drivers to recoup administrative costs.
But here’s where it gets controversial: Is it fair to penalize drivers who don’t use E-ZPass by charging them more than double? Advocates for equity say no, since not every driver can or wants to sign up for a digital tag. Meanwhile, transportation officials argue that the extra fee simply reflects the real-world costs of processing bills and maintaining the technology.
So, what do you think? Are rising tolls and cashless systems a step toward efficiency — or just another burden on everyday commuters? Let’s hear your thoughts in the comments below.
