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New Jersey car sales tax at a glance
| New Jersey | |
|---|---|
| Tax | sales and use tax |
| State rate | 6.625% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 6.6% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on all the payments, due at signing |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out New Jersey sales tax on a car
Multiply the taxable price by the rate. In New Jersey the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6.625% = $1,656.25 at the state rate.
6.625% statewide; no general local tax (a few reduced-rate zones exist, e.g. Salem County).
Trade-ins
Trade-in property of the same kind accepted as part payment reduces the tax base when the purchase and trade-in occur at the same time; for vehicles the dealer must be registered with MVC and Taxation and keep the title copy (Division of Taxation S&U-12). The same credit applies to dealer sales.
Leasing a car in New Jersey
Tax on all the payments, due at signing. New Jersey: for leases over six months the full tax is due up front, computed either on the lessor's purchase price or (more commonly) on the total lease payments plus cap cost reductions, fees and doc fees, less any trade-in (Tax Topic Bulletin S&U-12). The lease calculator uses New Jersey's method when you pick the state.
Dealer doc fees
No cap found; doc fees are part of the taxable lease amount.