Find the current New Jersey NJ Car Sales Tax, and also check the current sales tax rate for New Jersey cities. The Car Sales Tax Rates includes the state sales tax, and the county & city taxes.
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What is the Car Sales Tax in New Jersey?
The current New Jersey State Sales Tax Rate is 6.625% for the purchase of all vehicles, and has been in place since 1966. The sales tax rate is determined by the location of the buyer when the transaction is completed, because the state is a destination-based sales tax state.
The trade-in is taxed in New Jersey?
When you trade in your old vehicle you get a tax break, and you will be only taxed on the difference between the new car and your trade-in car. If your new car price is $30,000 and you get $10,000 for your trade-in car, you’ll be taxed on the amount you pay, or $20,000, in this case, saving you $662.5 if the car sales tax is 6.625%.
Rebates and incentives are taxed?
Rebates and incentives you receive when buying a new car are also taxed in New Jersey, and you’ll pay the tax on the full price of the vehicle.
Car purchases in New Jersey are also subject to other fees like registration, title, and plate fees, with an average of around $120 for this fees.
Dealerships are also charging a documentation fee (doc fee), that covers the costs of preparing and filing the sales contract & documents, etc. The average doc fee is around $360, with no limit to this doc fees a dealer can charge, according to the New Jersey law.
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We strive to offer the most accurate car tax rates available, but the sales tax rate are subject to change, and you should also check your local government tax offices for the current city, county, and state tax rates. No warranty is made as to the accuracy of information provided.