New Jersey used car dealer paperwork and sales tax guide
How New Jersey sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a New Jersey dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in New Jersey: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each New Jersey deal.
New Jersey tax and fees at a glance
| Item | New Jersey |
|---|---|
| State tax | 6.625% state rate |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary service fee | Part of the taxable amount |
| Service contract | Taxed |
| Starting title fee in DMS Apex | $60 |
How New Jersey sales tax is worked out
New Jersey: the dealer collects 6.625% on the price, the documentary service fee, service contracts and other charges, less a trade-in that goes to a registered dealer for resale. Title and registration fees are not taxed. There is no local tax. Each documentary service must be itemized with its price in at least 10-point type, and the fee may not be described as required by a government entity. Title fee starts at $60.
New Jersey paperwork a dealer prints
DMS Apex prints these documents for a New Jersey deal, all in black and white:
- Buyer's Order with the documentary service fee itemized
- Buyers Guide
Step-by-step form guides
- OS/SS-7 Application for Certificate of Ownership: how to fill it out
This is general information, not legal or tax advice. New Jersey rules change: confirm current requirements with the New Jersey Motor Vehicle Commission or the New Jersey Division of Taxation.
Common questions
How much is sales tax on a used car in New Jersey?
6.625% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the New Jersey Motor Vehicle Commission or the New Jersey Division of Taxation.
Does a trade-in lower the tax in New Jersey?
Yes. In New Jersey the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in New Jersey?
Yes. In DMS Apex the documentary service fee is part of the taxable amount for New Jersey.
Does DMS Apex print New Jersey dealer forms?
Yes. It prints Buyer's Order with the documentary service fee itemized, Buyers Guide.
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