Car Loan Calculator
How New Jersey taxes car purchases
- State vehicle tax rate
- 6.625%
- Trade-in lowers the tax
- Yes
- Tax cap
- None
- Source
- Official source, checked 2026-10-05
These are the rules for a new car bought from a dealer. Used-car and private-sale rules can differ. How we check this data.
New Jersey charges 6.625% at the state level. That rate is higher than 42 states and lower than 8 states. County and city taxes may add to it, so check your local rate and enter the total in the calculator.
What to know in New Jersey
New Jersey charges 6.625% on vehicles at a single statewide rate. The tax is figured on the price after your trade-in, so trading in at the dealer lowers it. The calculator comes prefilled with 6.625%, so for most buyers it is ready to use as is. Add title, registration and dealer documentation fees in the fees field.
Does New Jersey tax your trade-in?
No. New Jersey only taxes the difference between the new car's price and your trade-in. On a $35,000 car with a $10,000 trade-in, you'd pay $1,656.25 in state tax instead of $2,318.75, a saving of $662.50. That saving is worth counting when you compare a dealer's trade-in offer with selling the car yourself.
Example: a car loan in New Jersey
A $35,000 car with $5,000 down, $1,500 in fees, and a 60-month loan at 6.5% APR ($2,318.75 state tax, rolled into the loan):
- Monthly payment: $661.70
- Amount financed: $33,819
- Total interest: $5,883
- Total cost of the car: $44,702
Change any number in the calculator above to see your own figures.
Rebates and fees
The calculator charges tax on the price before any manufacturer rebate. Ask the dealer how New Jersey treats your specific rebate. Title, registration and dealer documentation fees vary, so ask for an itemized out-the-door price and put the fee total in the calculator.
Other states
States with similar vehicle tax rates:
- Arkansas 6.5%
- Kansas 6.5%
- Maryland 6.5%
- Washington 6.8%
- Nevada 6.85%