NEW JERSEY VEHICLE TAX
New Jersey car sales tax: 6.625%.
New Jersey applies its statewide 6.625% sales-tax rate to the purchase price of a new or used motor vehicle, subject to qualifying exclusions and exemptions.
New Jersey tax formula
(Vehicle selling price − qualifying same-kind trade-in) × 6.625%
New Jersey's definition of sales price excludes credit for qualifying property of the same kind accepted as part payment. For a typical dealer transaction, that can make a documented vehicle trade-in different from a separate private sale.
$40,000 New Jersey example
A $40,000 taxable vehicle produces an estimated $2,650 in sales tax. If a qualifying $10,000 dealer trade-in reduces the taxable sales price to $30,000, the planning estimate becomes $1,987.50.
Used and private-party vehicles
New Jersey states that the 6.625% rate applies to the purchase price of both new and used vehicles. For a casual sale, the state may request proof when the reported purchase price differs materially from the vehicle's market value. Gifts, assumed loans, swaps, family transfers, leases, and exemptions follow additional rules.
Official New Jersey sources
Read the Division of Taxation's motor-vehicle casual-sales questions and its consumer automotive tax guide.
Educational estimate reviewed September 3, 2026. Luxury or fuel-inefficient vehicle surcharges, leases, exemptions, rebates, private transfers, and documentation charges can change the result.