New Jersey still pays new EV buyers to go electric, but the deal changed in the last year. The state’s sales tax break on EVs is gone, and the cash rebate now depends on how much the car costs and how much you make. Here’s what actually applies if you’re ordering a Tesla in New Jersey right now.
How much the rebate is worth
The base Charge Up New Jersey rebate is $1,500 for an eligible new battery-electric vehicle. The program renewed for its FY27 cycle on July 1, 2026, and applications are processed first-come, first-served against a limited pool of state funding, so a rebate isn’t guaranteed just because you qualify on paper — get prequalified before you order, since prequalification is only good for 150 days or until the program pauses or closes. A related program for fleet and commercial EV charging was already paused to new applications as of July 24, 2026 after its funding ran out, which is a reminder that the passenger-vehicle rebate covered here can close mid-year too, even though it was still listed as open when this was checked.
Does a Tesla actually qualify?
Yes, with a caveat. The program excludes any vehicle with an MSRP over $55,000, and both the Model 3 and Model Y are listed as eligible vehicles on the program’s own site. Where it gets specific: every current Model 3 trim clears the bar, including the $54,990 Performance trim, according to Cars.com’s 2026 Model 3 research page. The Model Y is trim-dependent. The base rear-wheel-drive trim starts at $41,380 with destination, per Cars.com’s Model Y pricing breakdown, comfortably under the cap — but the Performance AWD trim runs $59,380 with destination on that same page, which is over it. If you’re ordering a Model Y Performance, don’t count on this rebate.
The income-qualified top-up: Charge Up+
Buyers who meet income limits can add $2,500 through Charge Up+, for a total of $4,000. The program’s published income caps are a modified adjusted gross income of $75,000 for single filers, $112,500 for head of household, and $150,000 for joint filers — or enrollment in a qualifying public assistance program instead. Charge Up+ requires separate income verification before you order; the state warns that applications are reviewed in the order received and can’t be expedited.
The home charger rebate
Separately, New Jersey offers up to $250 toward buying and installing a home Level 2 charger, on top of whatever you get for the car itself.
The sales tax exemption is gone
Older guides may mention that EVs were exempt from New Jersey sales tax. That ended in phases: the exemption dropped to a half rate of 3.3125% in October 2024, then the full 6.625% sales tax rate applied to EVs starting July 1, 2025, per the state’s Division of Taxation. Budget for full sales tax on a Tesla purchased in New Jersey now — it isn’t waived anymore.
Bottom line
Most Tesla buyers in New Jersey can expect a $1,500 rebate on a qualifying Model 3 or most Model Y trims, up to $4,000 if they meet the Charge Up+ income limits, plus up to $250 for a home charger — but full sales tax now applies, and the rebate itself runs on limited annual funding that can close before the fiscal year ends. Check your prequalification status directly with the program before you sign a purchase agreement.
Photo by Harry Tucker.