What is the sales tax rate on a car in New Jersey?

New Jersey charges its general 6.625% sales tax on motor-vehicle purchases. Unlike some states, there is no separate, lower automotive rate, so the same rate that applies to most retail goods applies to your car.

Does a trade-in reduce the sales tax I pay?

Yes. New Jersey lets you deduct the trade-in allowance from the purchase price before tax is calculated. If you buy a $35,000 car and trade in a vehicle worth $10,000, you pay 6.625% on $25,000.

What is the New Jersey luxury vehicle surcharge?

New Jersey adds a 0.4% Luxury and Fuel-Inefficient Vehicle Surcharge on cars with a sales price of $45,000 or more, or with a combined fuel economy rating of 19 mpg or less. It is charged on the full price, on top of the 6.625% sales tax.

Do I pay tax on a car bought from a private seller?

Yes. Sales tax on a private-party (casual) vehicle sale in New Jersey is collected by the MVC when you transfer the title, based on the purchase price or the vehicle's fair market value, whichever the MVC determines applies.

Are registration and title fees included here?

No. This tool estimates sales tax and the luxury surcharge only. The title fee, registration fee, and any documentary fees are separate flat charges added at the MVC and are not part of the sales tax calculation.

New Jersey Car Sales Tax Calculator

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Buying a car in New Jersey means paying the state’s 6.625% sales tax at the time you title and register it. This calculator deducts your trade-in first, applies the correct rate, and adds the 0.4% luxury surcharge automatically when your vehicle crosses the $45,000 threshold.

How it works

New Jersey applies its general sales tax rate to vehicle purchases and allows a trade-in deduction before tax:

taxable    = max(0, purchase price − trade-in allowance)
sales tax  = taxable × 6.625%
surcharge  = price ≥ $45,000 ? price × 0.4% : 0
total tax  = sales tax + surcharge

The 6.625% rate is New Jersey’s statewide sales tax with no county or city add-ons (the partial Urban Enterprise Zone rate does not apply to motor vehicles). The Luxury and Fuel-Inefficient Vehicle Surcharge is a flat 0.4% on the full price of any car priced at $45,000 or more, regardless of the trade-in.

Example and tips

Suppose you buy a $50,000 SUV and trade in a vehicle worth $8,000. The taxable amount is $42,000, so the 6.625% sales tax is about $2,782.50. Because the purchase price is $50,000 — above the $45,000 threshold — a 0.4% luxury surcharge of $200 is added on the full price, giving roughly $2,982.50 in total tax. Keep your trade-in figure accurate: it is the single biggest lever on the bill, and the surcharge is based on price, not on the post-trade-in taxable amount. Title, registration, and dealer documentary fees are charged separately at the MVC.