State Benefit·New Jersey·🏛️Tax Benefits

Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)

Exemption from New Jersey sales tax on a motor vehicle purchased with funds from the Veterans Administration.

Verified May 12, 2026againstnj.gov

At a glance

Benefit type: Tax Benefits — New Jersey
Who it's for: Veterans
VA rating needed: No rating requirement
Where it applies: New Jersey
Last verified: May 12, 2026

What is Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)?

Motor Vehicle Sales Tax Exemption (VA-Funded Purchase) is a New Jersey tax benefits benefit for veterans. Exemption from New Jersey sales tax on a motor vehicle purchased with funds from the Veterans Administration.

Who qualifies

Veterans

Available to any veteran
New Jersey residency

How to apply

Apply through the official New Jersey agency.

Open application

Who is eligible

Eligibility

Must be a disabled veteran who received funds from the Veterans Administration to purchase a vehicle. This typically applies to veterans approved for the VA Automobile Allowance (a one-time grant of up to ~$24,050 for veterans with qualifying service-connected disabilities such as loss or permanent loss of use of a hand or foot, or permanent impairment of vision).

What Motor Vehicle Sales Tax Exemption (VA-Funded Purchase) covers

Exemption

Full exemption from New Jersey sales tax (currently 6.625%) on the vehicle purchased with VA funds.

Important to know

This is NOT a blanket exemption for all disabled veterans. You must have received VA funds specifically for the vehicle purchase. Verification of VA Automobile Allowance approval is required during the application process.

How to apply for Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)

How to apply

At the time of vehicle purchase, provide documentation showing you received VA funds for the purchase to the dealer or the NJ MVC when registering the vehicle.

Open application Verify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: nj.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

Frequently asked questions about Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)

Who qualifies for Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)?▾

Motor Vehicle Sales Tax Exemption (VA-Funded Purchase) is for Veterans; available to any veteran; new jersey residency. See the eligibility details on this page and confirm with the official source before applying.

How do I apply for Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)?▾

Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.

Where can I verify Motor Vehicle Sales Tax Exemption (VA-Funded Purchase)?▾

Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other New Jersey Tax Benefits

Property Tax Deduction ($250)

$250 annual property tax deduction for all honorably discharged veterans.

$250/year

100% Property Tax Exemption (Totally Disabled)

Complete property tax exemption for veterans who are 100% totally and permanently disabled due to service-connected disability.

100% exemption

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