Live in one state, buying car from neighboring state...taxes
 

Hello,

I live in NJ and may be buying a '08 3s from PA. I'll be trading a car which should yield a ~$2K down payment.

I understand that I won't be double-taxed, but don't know whether I'll have to
A) pay 6% PA state tax at time of purchase and then pay (NJ 7%) - (PA 6%) at time of registration
B) pay all 7% NJ state tax at time of purchase
C) pay NO state tax at time of purchase but then have to pay all 7% NJ state tax

I hope I can avoid C) as I simply don't have that much cash on hand. Can the dealer give me enough of the trade value in cash to cover the 7% NJ state tax?

Thanks

DjB

I suspect you will pay taxes to the state where you register the car.