Remember to convert the sales tax percentage to decimal format. Gasoline purchases are not subject to the New Jersey Sales Tax, but a Gasoline Excise Tax does apply.. Certain businesses located within "Urban Enterprise Zones", including Salem County, are required to only collect a reduced sales tax of 50% the state sales tax rate (3.50%). The first link that pops up says: “New Jersey collects a 7% state sales tax rate on the purchase of all vehicles. Payment for the sales tax fee. Only two states have a minimum sales tax rate lower than 5 percent. These states are: Sales tax is a cost to consider when purchasing a car in state or out of state. New Jersey charges taxes and fees when you buy, title, and register a new or used car. 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. We may earn money from the links on this page. Our partner TaxJar can manage your sales tax calculations, returns and filing for you so you don't need to worry about mistakes or deadlines. You have 10 days to transfer ownership from the previous owner to yourself. If the out-of-state dealer is authorized to collect New Jersey sales tax, then they will apply the right amount to your purchase. For example, a $15,000 car will cost you $993.75 in state sales tax. This page covers the most important aspects of New Jersey's sales tax with respects to vehicle purchases. How they're taxed depends on where you live. There are several vehicles exempt from sales tax in New Jersey. The state general sales tax rate of New Jersey is 6.625%. Can the dealership incorporate the Sales Tax due at the beginning of a long-term lease into the monthly lease payments? If you buy a car in Delaware, New Hampshire, Oregon, or Montana, then you won't pay any sales tax to those states, explains World Population Review. Mississippi - Plus 5% state sales tax (2% below the state general sale tax). You must also provide proof of auto insurance when you register a vehicle in New Jersey. We value your feedback! Search our inventory of used cars for sale in New Jersey at Enterprise Car Sales. Why did I receive this notice? For example, you could trade-in your old car and receive a $5,000 credit against the price of a $10,000 new vehicle, making your out-of-pocket cost only $5,000. Registration fee. It costs $5 to transfer existing plates. If you wish to claim exemptions other than the ones listed below, contact the MVC Sales Section of the New Jersey Division of Taxation at (609) 984-6206. © 2021 SalesTaxHandbook. New Jersey collects a 7% state sales tax rate on the purchase of all vehicles. In addition to taxes, car purchases in New Jersey may be subject to other fees like registration, title, and plate fees. Appleton, who drives an electric vehicle, said the rebate is a good deal. Used car listings in New Jersey include photos, videos, mileage and features. Sales Tax Calculator | New Jersey has a destination-based sales tax system, * so you have to pay attention to the varying tax rates across the state. 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. According to NJ.com, the state assesses a 6.625 percent sales tax on the purchase price of any used or new vehicle. This means that you save the sales taxes you would otherwise have paid on the $5,000 value of your trade-in. R. 12/17 . To calculate how much sales tax you’ll owe, simply multiple the vehicle’s price by 0.06625. As long as you are a resident of New Hampshire, you won't need to pay sales tax on the purchase of your car, even when you go to register it. 20. Car registration fees are not deductible in NJ, but sales tax can be deducted on your federal return. You have the option of claiming either general state/local sales taxes OR state/local income tax.In states that have a state income tax, it is generally more advantages to take the income tax deduction. If you spend $7,000 on a car and an additional $1,000 on improvements but you sell the car for $7,000, it’s considered a capital loss, and you don’t need to pay tax on the sale. You can find these fees further down on the page.