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Do I have to pay taxes in both states if I buy a car from a different state than the one I live in?

I am looking to buy a used car. The only ones that I can find that are nice or are in my price range is from the neighboring state.

I currently live in New Jersey but keep seeing ads for nice cars in NY.

I don't really know the laws that well but the NJ DMV site suggests I call them. I really don't want to be put on hold for a long time and not get a real answer which I can expect from NJDMV.

4 Answers

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  • 1 decade ago
    Favorite Answer

    The way it works in NY/NJ is that if you live in NJ and buy a car in NY from a dealer, you pay the NY sales tax.

    The dealer will then give you a temporary tag and a sales tax receipt.

    You take the sales tax receipt to the state of NJ DMV and you pay for registration and permanent plates, there.

    If you buy the vehicle from a private seller in NY, then you would pay NJ taxes, registration and plates at the NJ DMV. A private seller is not legally allowed to collect taxes.

  • Anonymous
    1 decade ago

    The taxes for that state are attached to the price of the car. You pay that were you buy the car. For your state you live in you only pay taxes attached to the registering, license plates,etc. as you are not buying it so there is no sales tax.

  • 1 decade ago

    You pay taxes on the car when you register it in your home state.

  • 6 years ago

    Lou Wallman purchased in Calif paid sales tax, and registered in Arkansas and they charged me again for sales tax=====double tax----is this legal

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