1. What is NJ Vehicle Sales Tax?

New Jersey charges a 6.625% sales tax on the purchase price of most vehicles. This tax is collected when you register the vehicle with the New Jersey Motor Vehicle Commission.

2. How Does the Calculator Work?

The calculator uses the NJ vehicle sales tax formula:

Where:

• Vehicle Price — The purchase price of the vehicle before tax
• 0.06625 — The 6.625% NJ sales tax rate

3. Importance of Calculating Vehicle Tax

Details: Knowing the exact sales tax helps buyers budget properly for their vehicle purchase and understand the full cost of ownership.

4. Using the Calculator

Tips: Enter the vehicle purchase price in USD (without commas or dollar signs). The calculator will compute the 6.625% NJ sales tax and total amount due.

5. Frequently Asked Questions (FAQ)

Q1: Are there any exemptions to NJ vehicle sales tax?
A: Yes, certain vehicles like those purchased by disabled veterans or for certain business uses may qualify for exemptions.

Q2: Is the tax rate the same throughout NJ?
A: Yes, the 6.625% rate applies statewide with no additional local taxes.

Q3: Does this include other fees?
A: No, this calculates only the sales tax. Registration and title fees are additional.

Q4: How is tax calculated on leased vehicles?
A: For leases, tax is calculated on each monthly payment rather than the full vehicle price.

Q5: Can I deduct vehicle sales tax?
A: Under federal tax rules, you may be able to deduct sales tax paid on vehicle purchases if you itemize deductions.