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Division of Taxation

Boats and Other Vessels

The purchase of boats and vessels is subject to New Jersey Sales Tax under the New Jersey Sales and Use Tax Act. This act imposes a tax of half the applicable Sales Tax rate, up to a maximum of $20,000, upon the receipts from every retail sale of boats and vessels in New Jersey. (P.L. 2015, c. 170)

The following apply to vessel transactions and use in this state under N.J.S.A. 54:32B-2, N.J.S.A. 54:32B-8.6, and N.J.S.A. 54:32B-10 of the Sales & Use Tax Act.

  • Vessels acquired from a dealer in New Jersey are subject to Sales & Use Tax.
  • Vessel acquired by a resident of this state, including documented vessels, from a dealer outside the State of New Jersey are subject to Use Tax at the time of first use in this state.
  • Vessels acquired in a casual or non-dealer sale transaction that are subject to registration in New Jersey are subject to Sales & Use Tax.
  • Any vessel not meeting the requirements of the "Head Boat" exemption as defined by N.J.S.A. 54:32B-8.12 is not exempt from the Sales & Use Tax Act.

For additional information on exemptions and the taxability of boats/vessels in New Jersey, contact the Galloway Regional Information Center 609-415-6414, Neptune Regional Office 732-869-8057 or the Casual Sales Section 609-984-6206 in Trenton.


Last Updated: Friday, 04/16/21