Overhaulin'

Should I buy/lease a car in New Jersey or Massachusetts?

I currently live in New Jersey, but I am moving to Boston next month, and I am looking to buy/lease a car. NJ sales taxes are 7% and MA taxes are 6.25%. Does this mean it is more tax-efficient to purchase the car in Massachusetts, and are there any other differences I am not aware of? Thanks!

Public Comments

1. Let's assume you buy a $24000 car. The difference in taxes is about $150. Are you really such a cheap ass that you're going to try to save $150 on taxes, when you're making a 20,000$ purchase? Good job on thinking this out. And if you're looking at buying a cheaper car, the difference is even smaller.
2. If you don't have a valid Massachusetts address you will first need to title, register, and insure the car in New York then repeat the process when you get a Massachusetts address. The fees for title and registration are not prorated so that money paid to New York is gone. Massachusetts might give you credit for the New York sales tax or you might have to pay both. Call the Massachusetts Department of Revenue to find out. You will need to get a new insurance policy in Massachusetts even if you remain with the same company and there might be fees associated with that. If you already have a Massachusetts address a New York dealer should be able register and title the car for you in Massachusetts collecting the Massachusetts sales tax as well.