New Jersey Car Sales Tax Calculator
New Jersey charges a state vehicle sales/use tax of 6.63% on a car purchase. On a $20,000 vehicle that is about $1,325.00 in state tax before any local add-ons. Enter your own price below — and your trade-in, if New Jersey allows a trade-in credit — to estimate what you'll owe.
Quick answer: New Jersey’s state vehicle sales/use tax rate is 6.63%. Local (county/city) taxes may apply on top.
Estimate your New Jersey car sales tax
Enter the vehicle price. If New Jersey gives a trade-in tax credit, add your trade-in value to reduce the taxable amount.
State rate only. Many New Jersey counties and cities add a local sales tax on top, so your actual total may be higher. Trade-in credit rules vary — confirm eligibility with the official source below.
How New Jersey taxes a car purchase
| State vehicle sales/use tax rate | 6.63% |
| Taxable amount | Price − trade-in credit (where allowed) |
| Local / county tax | Varies by jurisdiction — added on top of the state rate |
New Jersey title fee is $60 for a standard title and $85 with a lien. State sales/use tax is 6.625%. Registration fees vary by weight and age and are administered by the NJ Motor Vehicle Commission. [Verified 2026-07-13, fetch-verified against nj.gov/mvc: title $60/$85 confirmed; the prior '$110 with two liens' figure was not found on the current MVC page and has been removed.]
Sales tax on a used car in New Jersey
New Jersey applies the same 6.63% state sales/use tax to a used car as to a new one. On a private-party sale the tax is normally collected when you title and register the vehicle — calculated on the price you paid, minus a trade-in credit where the state allows one, and checked against the vehicle's fair-market value to deter under-reporting.
Dealer vs. private-party purchases in New Jersey
New Jersey dealers collect the 6.625% sales tax at delivery and process title paperwork through the MVC's dealer system. Private-party buyers must take the assigned title, completed Application for Certificate of Ownership, sales-tax payment, proof of insurance, and ID to an MVC agency within 10 working days. Both paths apply the same flat 6.625% Sales and Use Tax — there is no private-party discount.
Source ↗What's different about New Jersey vehicle tax
New Jersey applies its 6.625% Sales and Use Tax to vehicle purchases at title transfer. Both dealer and private-party sales pay the same rate, calculated on the documented sale price or fair-market value if the price is unreasonably low. Vehicles purchased out of state by New Jersey residents owe Use Tax at the same rate at title transfer with credit for sales tax paid to the other state up to the New Jersey rate. Gifts and family transfers among immediate family members can qualify for exemption with proper documentation.
Source ↗County & local taxes in New Jersey
New Jersey has no county sales-tax add-on — the 6.625% state rate is uniform statewide. A handful of Urban Enterprise Zones historically applied a reduced rate, but UEZ rules generally do not apply to motor vehicle purchases. Local cost variance comes mainly from registration weight tiers, which scale with vehicle weight, and from emissions-area boundaries.
Source ↗Worked example: buying a car in New Jersey
Maria buys a used 2020 Honda CR-V from a private seller in Bergen County, New Jersey for $22,000. She finances the purchase (one lien).
| Vehicle price | $22,000.00 |
| State sales/use tax | $1,457.50 |
| Title fee | $85.00 |
| Annual passenger registration (weight + model-year tier, approximate) | $80.00 |
| Estimated total | $23,622.50 |
Maria pays the New Jersey 6.625% Sales and Use Tax ($1,457.50) on the $22,000 sale price at an MVC agency. Because she's financing, her title fee is $85 (one-lien tier). First-year registration depends on the weight class and model year of the CR-V; mid-size SUVs typically fall in the $70–$90 range. Confirm exact registration on the MVC fee schedule before paying.
What this estimate excludes
- Local and district taxes. County, city, and transit taxes are added on top of the New Jersey state rate.
- Title, registration, and plate fees. These are separate from sales tax — use the New Jersey registration and title-transfer calculators for those.
- Dealer documentation fees. A dealer “doc fee” is charged on top and is often itself taxable.
- Exemptions. Gifts, inheritance, and certain family transfers may be exempt — confirm with New Jersey Motor Vehicle Commission (MVC).
Official New Jersey sources
Related New Jersey tools & guides
Frequently asked questions
How much is sales tax on a car in New Jersey?
The New Jersey state vehicle sales/use tax rate is 6.63%. Multiply it by the taxable purchase price (usually the price minus any trade-in credit). Counties and cities may add a local sales tax on top, so confirm your combined rate with New Jersey Motor Vehicle Commission (MVC).
Do I pay sales tax when buying a used car from a private seller in New Jersey?
In most states, sales or use tax on a private-party vehicle purchase is collected when you title and register the car, not at the point of sale. The rate is generally the same as a dealer sale. Confirm the private-sale rules with New Jersey Motor Vehicle Commission (MVC).
Does New Jersey give a sales tax credit for a trade-in?
Most states tax only the difference between the vehicle price and your trade-in value, which lowers the tax you owe. A handful of states tax the full price with no trade-in credit. Verify New Jersey's treatment before you rely on the estimate above.
Are there local or county car sales taxes in New Jersey?
Often, yes. The rate shown here is the New Jersey state rate only; many counties, cities, and transit districts add a local sales tax on vehicle purchases, so your combined rate can be higher. New Jersey Motor Vehicle Commission (MVC) publishes the official combined rates.
Can you legally avoid sales tax on a used car in New Jersey?
The legitimate ways to lower or avoid vehicle sales/use tax in New Jersey are a qualifying trade-in credit (where the state allows one), a genuine gift or qualifying family transfer, or a specific exemption the state grants — not understating the sale price, which is illegal and easily caught by New Jersey Motor Vehicle Commission (MVC) against the vehicle's fair-market value. Confirm any exemption with New Jersey Motor Vehicle Commission (MVC) before relying on it.
Why does my New Jersey title cost more than $60?
The New Jersey MVC charges a tiered title fee based on the number of liens recorded: $60 with no lien, $85 with one lien, and $110 with two liens. If you finance the car (one lien), expect to pay $85 for the title. If two lenders are involved (rare), it's $110. Cash buyers pay the $60 base fee.
Do I have to transfer a New Jersey title within 10 days?
Yes. The MVC requires the buyer to transfer title within 10 working days of the date of sale. After that, a $25 late penalty is added to the $60 base title fee. Sales tax owed to the Division of Taxation can also accrue interest. Plan to visit an MVC agency promptly with the signed title, application, payment, proof of insurance, and ID.
Does New Jersey require a separate emissions test for my title transfer?
The title transfer itself does not require an inspection visit, but ongoing registration generally does: most gas-powered vehicles older than the new-vehicle exemption window must pass a periodic OBD-II emissions inspection at an MVC inspection facility or licensed private inspection facility. The exact cycle depends on vehicle age and history.
Last reviewed: 2026-01-01 · Reviewed by the Car Paperwork editorial team · Based on official New Jersey Motor Vehicle Commission (MVC) sources · Independent resource · Not legal advice