Overview
Electric vehicles used to be the big exception here. That ended in mid-2025: New Jersey's zero-emission vehicle sales tax exemption phased out in two steps and EVs now pay the same 6.625% as gas cars. This calculator applies New Jersey's actual rules for each scenario, including the gift affidavit path most other states don't offer this openly.
01 - Official fees
New Jersey car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Standard rate | 6.625% | dealer and private sales statewide |
| Dealer sale base | price − trade-in | |
| Private sale base | reported purchase price | MVC can question implausibly low prices |
| Genuine gift (any recipient) | 0% | title marked 'GIFT', Form BA-62 affidavit |
| Zero-emission vehicle | 6.625% | full rate since July 1, 2025 |
| Urban Enterprise Zone rate | Does not apply | vehicles excluded from the UEZ half-rate |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with the New Jersey Motor Vehicle Commission (MVC) - counties can add small local fees.
03 - Same state, other costs
More New Jersey vehicle costs
04 - Common questions
New Jersey car sales tax FAQ
Is New Jersey car sales tax really the same everywhere in the state?
Yes - 6.625% flat, whether you're in Newark, Cape May, or a Salem County Urban Enterprise Zone. Vehicles are one of the few categories explicitly carved out of the UEZ's half-rate discount, so 'zone' pricing tricks that work on furniture or electronics don't touch a car deal.
Whatever happened to New Jersey's EV sales tax exemption?
It's gone as of July 1, 2025. The state repealed the exemption in stages: fully tax-free through September 2024, a reduced 3.3125% from October 2024 to June 2025, then the standard 6.625% from July 2025 on. If you're pricing an EV in 2026, budget the full rate - there's no more tax advantage over a comparable gas car.
Does a trade-in lower my New Jersey sales tax?
At a dealership, yes - tax applies to price minus trade-in allowance. Trade a $9,000 car into a $28,000 purchase and you're taxed on $19,000, saving about $596. There's no trade-in credit on a private-party sale since there's no single contract netting the two together.
Do I really pay zero tax if someone just gives me a car?
Yes, if it's a genuine gift. New Jersey doesn't restrict the gift exemption to family the way many states do - mark the sales price as 'GIFT' on the title, complete the Vehicle Gift Affidavit (Form BA-62), and no sales tax is due to any recipient. The MVC can still question a $0 'gift' between strangers that looks like a disguised sale.
How does the MVC know what I actually paid for a private-party car?
You self-report the price when titling, typically backed by a bill of sale, and the MVC's use-tax assessment is based on that figure. Unlike Texas's SPV system, New Jersey doesn't publish a formula that overrides your stated price - but a number far below the vehicle's evident market value can draw a follow-up request for documentation.
Are any vehicle purchases fully exempt from New Jersey sales tax?
Beyond gifts: vehicles bought by qualifying nonprofits and government agencies, vehicles brought in by new residents who already paid comparable tax elsewhere, vehicles inherited through an estate, and qualifying farm and commercial vehicles over certain weight thresholds. Everything else, including EVs, is taxed at 6.625%.
Is there a separate luxury tax on top of the 6.625%?
For new vehicles priced at $45,000-plus or rated under 19 combined mpg, yes - an additional 0.4% Luxury and Fuel-Inefficient Vehicle Surcharge, collected by the dealer alongside the sales tax. It's a distinct line item, not part of the 6.625% rate.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.