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NJ Taxes Electric Vehicles? More Ways to Save

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NJ Taxes Electric Vehicles? More Ways to Save


As sales of electric vehicles (EVs) rise in New Jersey, so do taxes on residents. Earlier this year, Gov. Phil Murphy (D-N.J.) signed a phaseout on the sales tax exemption for zero-emission EVs. 

New Jerseyans already pay some of the highest taxes in the nation. According to the Tax Foundation, the Garden State has the eighth highest gas tax rate in the country. And, as Kiplinger previously reported, New Jersey is one of the most expensive states for homeowners to live in. 

So, how will the phase-out affect you and what are some things you can do to put tax savings back in your wallet? Read on.

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New Jersey EV incentive

You may have heard of the NJ EV tax exemption and the federal EV tax credit. But it’s important to note that they’re two different things. 

The EV tax exemption in New Jersey was a full sales tax exemption for zero-emission vehicles (ZEVs). The law was put in place some 20 years ago. 

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Since then, New Jersey has provided millions of dollars in funding to similar EV programs, like the Charge Up New Jersey rebate program and other projects geared toward charging stations. 

In this year’s budget brief, Gov. Murphy’s administration reported a minimum of $215 million in spending on these programs alone. 

However, the federal EV tax credit:

  • Provides up to $7,500 in savings for qualified new “clean vehicles” purchased
  • Unlike the New Jersey ZEV sales tax exemption, applies to qualified new or used electric vehicles, including hybrid plug-ins 

Rest assured, since these are separate incentives, you might be eligible for the IRS EV tax break, though eligibility is subject to income limits.  

For more information see How the EV Tax Credit Works.

Are electric vehicles exempt from sales tax in NJ?

A colleague of mine once quipped, “New Jersey taxes anything that moves.” And depending on your car situation, there could be some truth to that. 

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As the number of EVs on NJ roads moved from 68,000 to 140,000 in two short years, a new law has been enacted to tax the growing consumer base. 

“Personal vehicles have long represented a significant portion of the sales tax base,”  the State of New Jersey said in its 2025 budget brief released earlier this year. ” The report adds that “with new registrations of EVs approaching 10 percent of new vehicle registrations, it is responsible to acknowledge these vehicles as a regular part of the Market.” 

But what does that mean for you, the taxpayer?

For starters, the New Jersey repeal mandates: 

  • A phase-out provision for electric vehicles in the state
  • A sales tax of 3.3125% on ZEVs purchased on and after Oct. 1, 2024
  • Sales of EVs on or after July 1, 2025, will see a 6.625% sales tax

However, you may not have to buy a New Jersey EV to gain tax relief in the state. There are other state programs for which you may still be eligible. 

NJ rebate checks: Who qualifies? 

For example, you could be eligible for the New Jersey ANCHOR program. As Kiplinger has reported, this program provides property tax relief to eligible renters and homeowners alike via checks in the mail or direct deposit into your bank account. 

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For more information, see NJ is Sending Millions in ANCHOR Payment Checks. 

Another program for which you may be eligible is the NJ ‘Senior Freeze’ property tax program. Open to residents 65 or older, this program effectively reimburses you for any tax paid over a certain amount. 

To learn more, see NJ ‘Senior Freeze’ Property Tax Checks Mailed.

But if you want to apply, act soon: both programs have an enrollment deadline. 

Lastly, you can hit the ballot box this November. In addition to several key tax issues that will be debated during and after the election, the 2024 election could impact the EV tax credit

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So, stay informed and — where applicable — cast your vote.

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Vacant lot in Trenton’s North Ward transformed into city park

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Vacant lot in Trenton’s North Ward transformed into city park


Blacksmith Triangle, the site of a former gas station at the corner of North Olden and Lawrence avenues in Trenton, has taken on a new life as the city’s latest green space.

New Jersey Conservation Foundation (NJ Conservation), in partnership with the City of Trenton and other environmental and community organizations, worked to transform the site into a forested park addition over the last two years. Improvements included site clearing and grading, seeding, new sidewalks, bollards, a brick-paved entry plaza, and 14 honey locust trees. The project’s completion was celebrated in May.

The opening of Blacksmith Triangle in Trenton.(Courtesy of New Jersey Conservation Foundation)

The City remediated Blacksmith Triangle years ago to clean up the contamination left behind from its former use as a gas station. But until recently it remained covered with concrete and asphalt and was often used as a de facto parking lot. In 2024, NJ Conservation received a grant from the Licensed Site Remediation Professionals Association Foundation to plant trees on the site, which spurred conversations with Trenton officials about turning the lot into a forested plaza and gateway to George Page Park and the Assunpink Greenway. Construction began in December 2025, thanks to a significant financial contribution from the City of Trenton and additional funding secured by NJ Conservation from private donors.

With this new green space, project leaders aim to increase shade for city residents, who are experiencing disproportionate impacts of climate change. Trenton neighborhoods are dealing with the ‘heat island effect’ that causes higher ambient temperatures in urban areas than in suburban and rural areas.

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“Excessive heat is deadly in our communities, and this work will help future generations of Trentonians cope with the rising temperatures that will come with our new climate realities,” said Jay Watson, NJ Conservation’s Senior Fellow for Conservation Justice. “New Jersey Conservation Foundation is proud to do this green infrastructure work in our capital city.”

At a grand opening celebration for Blacksmith Triangle last month, Paul Harris, Trenton’s Director of Recreation, Natural Resources, and Culture, said the City is excited about the lot’s transformation, highlighting the partnership that made the project possible.

“Our goal is to green as much of the town as we can, but in order to do that successfully, we need to bring on partners,” said Harris.

The revitalization of Blacksmith Triangle is part of a larger greening effort throughout the city. NJ Conservation and its partners — City of Trenton, Isles, the New Jersey Tree Foundation, the Watershed Institute, and the Outdoor Equity Alliance — are working to build a greener, more equitable New Jersey through the Trees for Trenton program. Thanks to a grant from the New Jersey Department of Environmental Protection, 1,000 shade trees are being planted throughout Trenton, creating a healthier environment for residents and visitors.

Trees for Trenton was announced in 2023 at an Arbor Day celebration when the first trees were planted at Mulberry Street Park. More than 900 trees have been planted throughout the city since then.

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Blacksmith Triangle(Courtesy of New Jersey Conservation Foundation)
Blacksmith Triangle
(Courtesy of New Jersey Conservation Foundation)

About New Jersey Conservation Foundation

Recognizing that a healthy environment is critical to the well-being and survival of all living things, New Jersey Conservation Foundation is devoted to preserving land and protecting natural resources throughout New Jersey’s rural, suburban, and urban landscapes.

Since 1960, the nonprofit, nonpartisan, statewide organization has preserved more than 140,000 acres of open space, farmland, and parks. The organization manages more than a dozen nature preserves, conducts public outreach and education programs, and advocates for sensible land use and climate policies that will protect the health of New Jersey’s plants, wildlife, and people for generations to come.

Courtesy of New Jersey Conservation Foundation



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New Jersey

Severe thunderstorm watch declared for much of North Jersey

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Severe thunderstorm watch declared for much of North Jersey


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A severe thunderstorm watch looms over North Jersey on the evening of June 12 after days of extreme heat.

Nation Weather Service New York declared a severe thunderstorm watch for numerous North Jersey counties including Bergen, Passaic, Hudson, Essex, Morris and Sussex among other Central Jersey and New York counties. The watch is in effect until 9 p.m., according to the NWS statement.

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In an hourly forecast from The Weather Channel for Paramus, there is a 74% chance of thunderstorms at 7 p.m.

High temperatures reached past 90 degrees in many parts of North Jersey on June 11 and June 12 as a heat advisory also remains in effect until 8 p.m., said NWS New York.



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Severe Storms, Dangerous Heat Targets NJ Friday

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Severe Storms, Dangerous Heat Targets NJ Friday


“Dangerous heat is expected to continue across much of our region through today, with several record highs likely to be challenged again. High temperatures are forecast to peak into the low to mid 90s across most of the area,” the National Weather Service said Friday.

A Heat Advisory is in effect until 8 p.m. across the state except for Atlantic, Cape May, Cumberland and Salem counties.





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