MJP –
Driving in New Jersey can be a complex experience, especially when it comes to understanding the various taxes and fees associated with vehicle ownership and operation.
Among these, some costs might not be immediately apparent—what is often referred to as “ghost driving taxes.” These hidden fees can creep up on unsuspecting drivers.
Here’s a closer look at five ghost driving taxes that every New Jersey driver should be aware of.
1. Vehicle Registration Fees
While vehicle registration is a standard cost, many drivers underestimate how these fees can accumulate over time. In New Jersey, registration fees vary based on the type of vehicle, its weight, and the length of the registration period.
For some drivers, particularly those with multiple vehicles, these costs can add up significantly, especially if they fail to renew on time and incur late fees.
2. Sales Tax on Vehicle Purchases
When purchasing a vehicle in New Jersey, buyers are subject to a state sales tax of 6.625% on the sale price of the vehicle.
While this may seem straightforward, many are surprised to learn that this tax applies to both new and used vehicles. Additionally, if you purchase a vehicle from a private seller, you’ll still need to pay sales tax when registering the vehicle, adding to the overall cost.
3. Title Fees
Obtaining a title for your vehicle is another cost that can catch drivers off guard. In New Jersey, the fee for a title is $60.
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This fee is often overlooked when budgeting for vehicle purchases but is crucial for legal ownership. If you’re financing a vehicle, you may also incur additional fees associated with lien recording.
4. Toll Costs
New Jersey is home to numerous toll roads and bridges, and these costs can add up quickly for frequent travelers.
While some drivers may use E-ZPass to save on tolls, others who pay cash may not realize how often toll costs can impact their overall driving expenses. It’s essential to budget for these tolls, especially if you regularly commute or travel for work.
5. Insurance Costs
While not a tax in the traditional sense, insurance costs in New Jersey can be among the highest in the nation. New Jersey drivers are required to carry a minimum amount of liability insurance, which can be costly.
The average premium can vary significantly based on factors such as location, driving history, and the type of vehicle, often leading to budget surprises for many drivers.
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Conclusion
Understanding these ghost driving taxes can help New Jersey drivers better prepare for the financial responsibilities that come with vehicle ownership.
By staying informed about registration fees, sales tax, title fees, tolls, and insurance costs, drivers can avoid unexpected expenses and make smarter financial decisions.
As New Jersey continues to navigate its unique landscape of driving costs, being proactive can ensure that you stay ahead of the curve and keep your budget in check.
