UPDATE: EV Tax rate is (was) 3.3125%

on... July 1st 2025 the EV Tax will be 6.625%

The EV Incentives are going away.

July 1, 2025 and after: The tax rate is 6.625%, which is the state's regular sales tax rate

EV Car Buyers Get a Reduced Tax Rate! - NO More. It's Over.

EV tax going up on 7/1/25 -- all cars will be taxed the same

New Jersey (NJ) charges a sales tax on electric vehicles (EVs). The tax rate depends on when the vehicle was sold:

October 1, 2024 to June 30, 2025: The tax rate is 3.3125%
July 1, 2025 and after: The tax rate is 6.625%, which is the state's regular sales tax rate

The tax applies to new and used EVs.

The exemption does not apply to plug-in Hybrid vehicles. They are taxed just like regular cars.

Example Vehicles that we have in stock includes:

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How to receive your sales tax exemption:

For used vehicles: The person you are buying the vehicle from should complete the Exempt Use Certificate citing the above reference. When you go to register your vehicle at the Motor Vehicle Commission, bring the Certificate. You will need to present it at that time to be exempt from paying sales tax.

Sales Tax Exemption – Zero Emission Vehicles (ZEV) (N.J.S.A. 54:32B-8.55)

The New Jersey Sales and Use Tax Act provides a sales and use tax exemption for zero emission vehicles (ZEVs), which are vehicles certified pursuant to the California Air Resources Board zero emission standards for the model year.

The exemption is NOT applicable to partial zero emission vehicles, which includes hybrids such as the Toyota Prius and Honda Civic Hybrid, nor does it apply to plug-in hybrids such as the Chevy Volt or Toyota Prius Prime. The exemption is also NOT applicable to labor or parts for qualified vehicles.

The definition of “sale” in the law includes rentals and leases. Thus, the exemption is applicable to the sale, rental or lease of a new or used zero emission motor vehicle. For light duty vehicles and neighborhood electric vehicles, the exemption is effective on and after May 1, 2004. For medium duty and heavy duty vehicles, the exemption is effective on and after March 1, 2021.

Motor Vehicle Dealers, Leasing and Rental Companies and Other Vendors: In order to document the exemption for the sale, lease or rental of a qualified zero emission vehicle, the customer should complete an Exempt Use Certificate (ST-4) and insert the statutory reference “N.J.S.A. 54:32B-8.55.”

The following vehicles have been certified by the New Jersey Department of Environmental Protection (DEP) as qualified Zero Emission Vehicles and thus, are exempt from New Jersey sales and use tax: