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Vehicles exempt from sales tax

There are several vehicles exempt from sales tax in New Jersey. To claim your exemptions you must visit an MVC Agency. If you wish to claim exemptions other than the ones below, contact MVC Sales Section of the Division of Taxation at (609) 292-6400.

Sales tax exemptions

Exemption #1 - Vehicle is acquired by:
  • Federal government or one of its agencies
  • State of New Jersey or one of its agencies
  • Political subdivisions or the United Nations
Exemption #2 – Vehicle is acquired by:
  • Federal government or one of its agencies
  • State of New Jersey or one of its agencies or political subdivisions
  • United Nations or any other international organization of which the United States is a member
Exemption #3
  • Vehicles used directly and exclusively for production or sales of farm products
  • School buses used for transportation of school children
  • Recycling equipment
  • Repossessions
  • Used mobile homes (see Special Conditions, below)
  • Limousines
  • Low Speed Vehicles (LSVs) if certified by the Commissioner of the New Jersey Department of Environmental Protection (NJDEP)
  • 100% Zero Emission Vehicles (ZEVs) - Exempt Use Certificate required
  • You are a resident service member, stationed out-of-state and buy a car outside New Jersey, but wish to title the vehicle in New Jersey. You may defer payment of tax until the vehicle is brought to the state upon release from active military duty. You must present a Letter of Deferment (issued by Division of Taxation) at time of titling. If Letter of Deferment is not received, sales tax must be paid
  • Vehicles for tax-exempt organizations with a 9-digit exemption number from the Division of Taxation
Exemption #4 - The vehicle was purchased by a leasing or rental company from a non-registered vendor. To be a valid exemption, you must be registered for New Jersey sales tax
Exemption #5 - Vehicle was acquired by an heir, legatee or trust beneficiary

Exemption #6 - Vehicle was a gift (see Special Conditions, below)
Important note: The titled owner (seller) must enter "gift" as the sale price on the New Jersey title. If the information on the title appears to be changed or altered, additional documentation may be required by the Motor Vehicle Commission. Visit the NJ Divison of Taxation website for details on motor vehicle casual sales notices.

Exemption #7 – Vehicle was purchased in another state while the purchaser was a non-resident of New Jersey

Exemption #8
  • Vessel used for commercial fishing or as a party boat (more than six passengers and subject to annual inspection)
    IMPORTANT NOTE: Refer to the NJ Division of Taxation website for guidance on Sales and Use Tax for the purchase of boats and vessels

  • Commercial trucks, truck tractors, trailers or semi-trailers and vehicles used in combination with them which are registered in New Jersey and:
    • have a GVWR in excess of 26,000 pounds as specified by the manufacturer; or
    • are operated actively and exclusively for the carriage of interstate freight under a certificate or permit issued by the Interstate Commerce Commission; or
    • are registered as farm vehicles under motor vehicle statute (N.J.S.A. 39:3–24, 25) and have a GVWR in excess of 18,000 pounds as specified by the manufacturer
Special Conditions
        • If the vehicle is a gift, the sale price must be noted as "GIFT". If the information appears to be changed or altered, additional documentation may be required by the Motor Vehicle Commission.
        • If you are a disabled vet and received funds from the Veterans Administration to purchase a car, you are not subject to tax
        • If you are a bank, leasing company, insurance company or other financial institution and take the title for reasons of repossession, insurance loss or lien addition, you don’t have to pay sales tax unless the vehicle is held by the organization for its own use. A sales tax-satisfied stamp is required with the appropriate exemption number
        • If you bought a used mobile home, you do not have to pay sales tax. This exemption does not apply to used travel trailers, campers, or recreational vehicles