Vehicle count and classification data are very important inputs for intelligent transportation systems (ITS). Magnetic sensor-based technology provides a very promising solution for the measurement of different traffic parameters. In this work, a novel, real-time vehicle detection and classification system is presented using a single magnetometer. The detection, feature extraction, and classification are performed online, so there is no need for external equipment to conduct the necessary computation. Data acquisition was performed in a real environment using a unit installed into the surface of the pavement. A very large number of samples were collected containing measurements of various vehicle classes, which were applied for the training and the validation of the proposed algorithm. To explore the capabilities of magnetometers, nine defined vehicle classes were applied, which is much higher than in relevant methods. The classification is performed using three-layer feedforward artificial neural networks (ANN). Only time-domain analysis was performed on the waveforms using multiple novel feature extraction approaches. The applied time-domain features require low computation and memory resources, which enables easier implementation and real-time operation. Various combinations of used sensor axes were also examined to reduce the size of the classifier and to increase efficiency. The effect of the detection length, which is a widely used feature, but also speed-dependent, on the proposed system was also investigated to explore the suitability of the applied feature set. The results show that the highest achieved classification efficiencies on unknown samples are 74.67% with, and 73.73% without applying the detection length in the feature set.