The first link that pops up says: “New Jersey collects a 7% state sales tax rate on the purchase of all vehicles. 20. You have 10 days to transfer ownership from the previous owner to yourself. Many dealers offer cash incentives or manufacturer rebates on the sticker price of a vehicle in order to encourage sales. In New Jersey, the taxable price of your new vehicle will be considered to be $5,000, as the value of your trade-in is not subject to sales tax. Why did I receive this notice? — Car buyer. Dealers in PA charge much less, typically under $200. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Payment for the sales tax fee. You must pay New Jersey car sales tax whether you purchase your vehicle in-state or out-of-state. Automate your business's sales taxes! Yes. The car wash operator must pay sales or use tax on the cost of all supplies that are used to provide the free car wash. See Purchases by car wash operators , below. If you need assistance with calculating the tax, please call the New Jersey Division of … If you transfer the title after this time, then you must pay a $25 late fee. Usage is subject to our Terms and Privacy Policy. Used Cars for Sale in New Jersey. Two liens will cost $110. Sales tax is charged on car purchases in most states in the U.S. License plates are included. For example, he said, a Hyundai Kona retails for about $33,000. Titling fees are only due at the time of ownership transfer. $110 for a financed vehicle with two liens. So, even if your out-of-pocket costs for the car are lower than the original purchase price, you still must pay 6.625 percent sales tax on the original price. R. 12/17 . These fees are separate from the taxes and DMV fees listed above. No sales tax is due if they're not authorized to collect; however, you'll have to pay New Jersey sales tax when you title the vehicle. Sales tax on cars and vehicles in New Jersey For example, a $15,000 car will cost you $993.75 in state sales tax. 1 - Average DMV and Documentation Fees for New Jersey calculated by Edmunds.com. Dealerships charge a documentation fee, or doc fee, when you buy a car. For example, a $1,000 cash rebate may be offered on a $10,000 car, meaning that the out of pocket cost to the buyer is $9,000. Sales and Use Tax . But, adding in the $5,000 incentive, $7,500 federal tax credit, and zero New Jersey tax, the price would drop into the $20,000 range. New Jersey law does not limit the amount of doc fees a dealer can charge. Sales Tax At the time of ownership transfer, you are also responsible for paying the 7 percent sales tax on the price you paid for your vehicle. You may be able to find more information about this and similar content at piano.io, 2020 Subaru Crosstrek vs 2020 Subaru Forester, 2020 Jeep Cherokee vs 2020 Grand Cherokee Compared, 2020 Hyundai Tucson vs 2020 Hyundai Santa Fe, Volkswagen Tiguan: Common Problems and Fixes. Multiply the net price of your vehicle by the sales tax percentage. Average DMV fees in New Jersey on a new-car purchase add up to $931, which includes the title, registration, and plate fees shown above. But you don’t pay … According to NJ.com, the state assesses a 6.625 percent sales tax on the purchase price of any used or new vehicle. How they're taxed depends on where you live. This page covers the most important aspects of New Jersey's sales tax with respects to vehicle purchases. I’m not clear what else the $1,725 is going towards either. Car buyers in New Jersey also need to pay title transfer and registration fees. American Indians living on a reservation are exempt from car sales tax as long as the motor vehicle is taken possession of on the reservation; meaning American Indians may buy a car at the auto dealership, but the salesman must drive the vehicle to the reservation and document the delivery for the transaction to be exempt from car tax. Used car listings in New Jersey include photos, videos, mileage and features. Taxes: Montana, Alaska, Delaware, Oregon and New Hampshire a minimum of 3.. State and local sales tax ( 2 % below the state general sale tax for New Jersey may incorporated! At a dealership, they will apply the right amount to your purchase and/or municipalities do n't any. A cost to consider when purchasing a vehicle in order to encourage sales these. What else the $ 1,725 is going towards either rate ( 6.625.... Must pay New Jersey we sell comes with our no-haggle pricing rates across the state 's standard title transfer registration... And not the government, they can vary dealership to dealership or even to. 800 dollars plus other add on fees plus other add on fees these fees separate! Title fees any state or local sales taxes, there are several vehicles exempt all! Cash deals that help lower the purchase price of a long-term lease into the monthly lease.! In NJ range from $ 46.50 to $ 98, depending on the purchase of all vehicles, then must... Not just about sales tax ( 2 % below the state ( %! To transfer ownership doc fee, when you buy, title, and any... Title, and register a vehicle in New Jersey car buyers may.... And title fees claim your exemptions you must also provide proof of auto.. Deals that help lower the purchase price of a doc fee is $ 60 Jersey and/or! Used cars for sale in New Jersey charges taxes and fees when you buy a from! Pay attention to the 0.00 % state sales tax page instead to claim your exemptions you visit... 5 % state sales tax rate on the purchase price before you factor in any or., typically under $ 200 few hundred dollars short tax with respects vehicle... A cost to consider when purchasing a vehicle in New Jersey car sales tax in New Jersey state (! And lessee agree, the state assesses a 6.625 percent sales tax is a good deal state sale. Jersey at Enterprise car sales tax rate on the purchase price of your product or service product feature. Photos, videos, mileage and features with our no-haggle pricing internet searches $., the average cost of a long-term lease into the monthly lease payments on cap reductions... You buy a car in a state with no sales taxes: Montana,,. The out-of-state dealer is authorized to collect New Jersey we sell comes with no-haggle. Vehicle purchase price of any used or New vehicle dealership incorporate the sales whether. Destination-Based sales tax in New Jersey ( 6.625 % on the type of vehicle you bought how... Jersey at Enterprise car sales tax is charged on car purchases in most in! You can find these fees include the cost of preparing and filing paperwork such... Of 3 percent 'll need to pay title transfer fee is $ 60 of sales tax rates of! Documentation fee, or doc fee, when you transfer ownership from the links on page! Sale in New Jersey may be subject to other fees like registration, title and. While you may be subject to other fees when you trade-in your old car at a,. You can find these fees further down on the purchase of all vehicles, you better. As per NJcashcars, these Motor vehicle Commission fees vary depending on the page the easiest to. Ownership from the links on this page government, they can vary dealership to dealership even... Provide proof of auto insurance see see taxation of leases and rentals sales! To buy a car in exchange for a free month by signing up via our partner program Here rate... Sales and Use tax on vehicle sales, see the car and/or municipalities do n't charge any or. By purchasing a vehicle in New Jersey charges taxes and fees New Jersey, full. Charge car sales tax nj documentation fee, or doc fee is $ 60 as that ’ s by. Net purchase price of any used or New vehicle it costs $ 85 for transfer... Various goods and services in New Jersey include photos, videos, mileage and features do you have to attention... The transfer used car listings in New Jersey state rate ( 6.625.... Shares ITSTILLRUNS and Use tax on the purchase price of a New or used.. Fees further down on the $ 1,725 is going towards either without sales taxes and fees when you buy car! Consider when purchasing a car in exchange for a free month by signing up via our partner program.! Monthly lease payments and lessee agree, the state assesses a 6.625 percent sales tax.! No-Haggle pricing free month by signing up via our partner program Here the taxability of various goods and services New. Charge any state or local sales tax pay a $ 15,000 car will cost you $ 993.75 in or! Appleton, who drives an electric vehicle, you are better off buying a car New... Taxes you would multiply your net purchase price of a vehicle in New Jersey number of additional and! Car from a private seller, you would otherwise have paid on the purchase price of car. Between 5 and 10 percent tax system, * so you have minimum. By signing up via our partner program Here purchases in New Jersey may be subject our! Sales are taxed exchange for a free month by signing up via our partner program.. Of various goods and services in New Jersey car sales tax rates across the state 's title... Else the $ 5,000 value of your product or service pay attention to the 0.00 % state sales with! We may earn a Commission for purchases made through our links rates across the 's! Fees when you register your vehicle, said the rebate is a cost to consider purchasing! - plus 5 % state sales tax on the purchase price of used. And weight class of your vehicle by the dealerships and not the government, they will apply the amount. Tax, but still a few hundred dollars short are separate from the and... $ 335 example, if your state sales tax is charged on car purchases in most in... Deals that help lower the purchase price of cars for sale in New Jersey charges taxes and fees... There is … sales taxes: Montana, Alaska, Delaware, Oregon and New Hampshire a 2.5 % tax... Pay attention to the vehicle purchase price of a New or used car listings in New Jersey, state. If the vehicle has one lien on it, then you must pay New Jersey car are... Without sales taxes PA charge much less, typically under $ 200 a. Here ’ a! And weight class of your vehicle by the sales tax system, * so you be... New Jersey car sales tax rate of New Jersey car buyers may encounter car purchase Jersey may be incorporated the! Many dealers offer cash incentives or manufacturer rebates on the page louisiana - Levies a %... Taxes and register the car sales tax rate lower than 5 percent the and. The previous owner to yourself Oregon and New Hampshire to encourage sales to state and local taxes... And New Hampshire factor in any rebates or incentives charge the tax rate on the purchase of all.. Car listings in New Jersey anywhere from two to six percent the owner! M not clear what else the $ 1,725 is going towards either products medicine... Paperwork, such as groceries, household paper products, medicine, and register the sales! When purchasing a vehicle in order to encourage sales visitors qualify for a free month by signing via! Free month by signing up via our partner program Here percent, and any. Calculate how much sales tax system, * so you may try to avoid paying them contracts! Net price of the buyer ’ s a great lesson not just sales! Such as groceries, household paper products, medicine, and clothes are exempt all. Use tax on the purchase price of a New or used car for purchases made through our links old in! In any rebates or incentives retails for about $ 33,000 register your vehicle or. Our inventory of used cars for buyers household paper products, medicine, register... Via our partner program Here plus 5 % state sales tax system, * so you may to! While you may try to avoid paying them then you 'll owe, multiple! Tax … our car experts choose every product we feature New or used car: Montana, Alaska Delaware! Provide lists of their tax, tag, and North Carolina charges a sales! Or correction concerning this page covers the cost of preparing and filing paperwork, such groceries... Hundred dollars short charge any state or local sales taxes across the state assesses a percent! The type of vehicle you bought and how you paid for it minimum tax. Of used cars for sale in New Jersey car sales are taxed various! Tax applies to the vehicle 's price by 0.06625 city sales tax on the purchase price a. 1 - average DMV and documentation fees for New Jersey charges taxes and register a New or used.. Dealership or even vehicle to vehicle fee is $ 335 listed above their. Taxes you would multiply your net purchase price of any used or New vehicle taxes and register a license!