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.
Apply now
Apply directly through the official New Jersey agency.
About this benefit
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).
IMPORTANT
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.
Exemption
Full exemption from New Jersey sales tax (currently 6.625%) on the vehicle purchased with VA funds.
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 against official source
Last checked 2026-05-06 against www.nj.gov. Always confirm current rates and rules with the New Jersey state agency before applying.
Other New Jersey Tax Benefits
See every benefit you qualify for in New Jersey
Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and New Jersey residency — in under 2 minutes.
Find My New Jersey Benefits