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New Jersey · What a car really costs

Buying a car in New Jersey.

New Jersey charges sales and use tax of 6.625% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.

6.625%
Sales and use tax on a vehicle
Full credit
Trade-in reduces the taxable price
$60.00
Title fee
$236
Registration, typical new car
~$695
Doc fee, typical (no cap)

How the tax works.

No local sales tax in New Jersey (Urban Enterprise Zone reduced rates do not apply to motor vehicles).

Manufacturer rebates are included in the taxable receipt (the rebate is consideration from a third party); dealer discounts are not.

Leases longer than six months: the dealer/lessor collects sales tax up front at inception, computed on either the total of the lease payments or the original purchase price (lessor's election), per Publication S&U-12.

Luxury and fuel-inefficient vehicle surcharge: an additional 0.4% of the sales price on new vehicles with a price of $45,000 or more (before trade-in) or an EPA combined rating below 19 mpg (N.J.S.A. 54:32B-8.63 era surcharge, P.L. 2006 c.39). Zero-emission vehicles have been fully taxable at 6.625% since July 1, 2025.
Trade-ins: Trade-in of a motor vehicle to the dealer at the time of sale reduces the taxable receipt.

At the DMV.

FeeAmount
Title$60.00
Registration (weight-based)~$236
Title with lien (replaces the $60 title fee when financed)$85.00
Annual passenger fee: vehicles within 2 model years and under 3,500 lbs $59; over 3,500 lbs $84 (older vehicles $46.50/$71.50). New vehicles must prepay four years of registration at purchase: $236 for a car under 3,500 lbs, $336 over 3,500 lbs. ZEVs add $250+ per year.

Leasing in New Jersey.

upfront on total

Cities in New Jersey.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

TrentonMercer CountyNewarkEssex CountyPatersonPassaic CountyJersey CityHudson CountyCamdenCamden CountyCliftonPassaic CountyEdisonMiddlesex CountyNew BrunswickMiddlesex CountyPrincetonMercer CountyToms RiverOcean County
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Questions.

How much is sales tax on a car in New Jersey?

6.625%. New Jersey applies one rate statewide on vehicles, so it does not change from city to city.

Does a trade-in lower the sales tax in New Jersey?

Trade-in of a motor vehicle to the dealer at the time of sale reduces the taxable receipt.

What are title and registration fees in New Jersey?

Title is $60.00. Annual passenger fee: vehicles within 2 model years and under 3,500 lbs $59; over 3,500 lbs $84 (older vehicles $46.50/$71.50). New vehicles must prepay four years of registration at purchase: $236 for a car under 3,500 lbs, $336 over 3,500 lbs. ZEVs add $250+ per year.

Is the doc fee capped in New Jersey?

No. New Jersey sets no statutory cap, and dealers typically charge around $695. No statutory cap. Typical from CarEdge 2026 (secondary).

How is a lease taxed in New Jersey?

upfront on total

Where these numbers come from.

Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.