New Jersey car sales tax: 6.625% and what it applies to

• New Jersey charges 6.625%, and that rate is the same everywhere in the state — no county or city adds to it on a vehicle purchase.

• Taxed on top of the vehicle price: the dealer doc fee, dealer-installed accessories and extended warranties and service contracts.
• Your trade-in comes off before tax is calculated.

• New Jersey sales tax is flat statewide at 6.625% — no county or city variation applies to vehicle sales (New Jersey's reduced-rate Urban Enterprise Zones and Salem County both explicitly exclude motor vehicles).
• Your trade-in reduces the taxable amount, with no dollar cap, as long as it's part of the same dealer transaction.
• Manufacturer rebates are taxed in New Jersey: tax is computed on the price before the rebate, since that's what the dealer is ultimately paid. A dealer's own cash discount (not reimbursed by a third party), by contrast, does lower your taxable price.
• New Jersey no longer exempts electric vehicles from sales tax — that exemption fully phased out July 1, 2025. EVs do pay a separate annual registration surcharge ($270 for 2026, rising through 2028).
• The dealer's documentary fee is NOT capped by New Jersey law (just required to be itemized in the paperwork) and is part of the taxable price.

Source: NJ Division of Taxation — NJ Consumer Automotive Tax Guide · rules last verified Jul 6, 2026. Methodology.