New Jersey car tax
New Jersey has no yearly car tax. Owners pay registration fees by model year and weight, and zero-emission vehicles pay an extra yearly ZEV fee. A car purchase is taxed at 6.625%, plus a 0.4% surcharge on new cars of $45,000 or more or with low fuel economy.
No yearly value-based car tax. ZEVs pay a yearly ZEV fee of about $250 or more, rising $10 a year.
Buying a car in New Jersey: one-time tax
New Jersey sales and use tax — 6.625%. Your trade-in is subtracted before tax.
A one-time 0.4% surcharge applies to new cars priced at $45,000 or more or rated under 19 mpg (ZEVs exempt). Urban Enterprise Zone reduced rates do not apply to cars.
Registration and due dates
Passenger car registration is about $46.50–$84 a year, by age and weight. A title costs $60.
No yearly car tax. Registration renews every year.
Cut what your car costs in New Jersey
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Does New Jersey tax cars every year?
No. Only registration fees apply, plus a yearly ZEV fee for electric vehicles.
What is the luxury surcharge?
A one-time 0.4% fee on new cars of $45,000 or more or under 19 mpg, collected at purchase.
Can I deduct New Jersey car taxes on my federal return?
Generally no. New Jersey has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax. Sales tax on the purchase can be deducted instead of income tax if you itemize.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.