Zero Emissions Vehicle (ZEV) Tax Exemption

ZEVs sold, rented, or leased in New Jersey before October 1, 2024, are exempt from state sales and use tax. This exemption does not apply to partial ZEVs, including plug-in hybrid electric vehicles. ZEVs that are sold on or after October 1, 2024, and before July 1, 2025, will be subject to a 3.3125% tax. ZEVs are defined as vehicles that meet California Air Resources Board zero emission standards for that model year. For a list of qualified ZEVs, see the New Jersey Department of the Treasury ZEV Sales Tax Exemption website.

(Reference New Jersey Statutes 54:32B-8.55 and Assembly Bill 4702, 2024)