Let’s take a look at an example of the incentives an EV buyer can receive when purchasing a 2023 ID.4. Note, these incentives are only for Battery Electric Vehicles (BEVs), and are not eligible for Plug-In Hybrid Electric Vehicles (PHEVs).

EV under $45,000

A buyer of a $44,999 EV in the state of New Jersey is looking at some really serious incentives with the launch of this new program. Let’s take a look at an example:

Volkswagen ID.4*

$44,999

 - $4,000 (NJ rebate)

$40,999

 - $7,500 (federal rebate)

Final price: $33,499 (bonus: no sales tax on EVs in New Jersey!)

Find Volkswagen ID.4 models that qualify.

*Note that the price of a VW ID.4 depends on the model, and could cost more than $45k.

What about EVs over $45,000? Do they qualify for the NJ state rebate?

With the new program, electric vehicles priced between $45,001 and $55,000 qualify for a $1,500 rebate. Not bad! While this is not as good as the state’s previous incentive for EVs over $45k (which was $2,000), it is still a nice amount off of those pricier electric models (and certainly more than you can get from the state for purchasing a gas car!).

Let’s take a look at an example:

Ford Mustang Mach-e 2023

$50,795

 - $1,500 (NJ rebate)

$48,495

 - $3,750 (federal rebate)

Final price: $45,545 (bonus: no sales tax on EVs in New Jersey!)

Find Mach-e models that qualify.

Does NJ have sales tax on the purchase of an EV?

No! New Jersey allows residents to fill out a form ST-4 which exempts them from sales tax at the dealership, which is a rebate of 6.625%. Note that the sales tax exemption is also only for BEVs (and not PHEVs).

What about New Jersey’s EV charging incentives?

New Jersey is keeping its residential EV charging incentive program Charge Up for those looking for more convenient ways to charge their EV from home. Residents receive $250 off any approved home chargers from the list, including popular ones like Juicebox and Grizzl-E chargers.

Where can I find used EVs eligible for the tax credits?

Good news, we have already done some of the work for you! Check out our EV listings platform to find used electric models located near you that qualify for the federal tax credit. Use the Tax Credit filter to identify which qualify for $3,750 or $7,500 of tax rebates.

Also, to learn about which electric vehicle models qualify for the federal EV tax credits and more specifics on the requirements, check out our blogpost.