What you pay in tax when you buy a vehicle in New Jersey, from the statute and the revenue department.
Verified September 21, 2026 · statute and revenue department cross-checked
The statute and the actual bill do not match. The electric vehicle exemption is gone. It was cut to 3.3125 percent in October 2024 and ended completely on July 1, 2025. Guides written before then still say EVs are tax free in New Jersey.
Advertisement
Buying the car is only half the cost. You still owe an annual registration fee.
No local sales tax anywhere in New Jersey. Trade-in credit applies only when you trade to a registered dealer in the same transaction. Manufacturer rebates are taxable, so tax is calculated before the rebate comes off.
New Jersey Tax Guide, Motor Vehicle Purchases “When a purchaser uses a manufacturer’s rebate or credit card program rebate, Sales Tax is charged on the price of the motor vehicle before any rebate(s)”
Last verified: September 21, 2026.
Advertisement
Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.