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.
State BenefitNew JerseyTax Benefits
Verified September 30, 2026 against nj.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
- September 30, 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
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 $27,074.99 as of Oct. 1, 2025; VA adjusts it each Oct. 1 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
Exemption from New Jersey sales tax (currently 6.625%) on the amount received from the VA (or NJ DVA) for the vehicle.
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.
Verified information & sources
- Last verified
- September 30, 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.
How VetUnlock verifies benefitsFrequently 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.