Calculator · Lease tax by state
Georgia car lease tax
Tax is assessed once at signing on the depreciation you pay for over the lease plus any down payment — not on the vehicle price. Putting more money down does not change the amount taxed.
How Georgia calculates it
TAVT replaces sales tax entirely; current rate 7.0% of fair market value (dor.georgia.gov). For LEASES, HB 63 (2021) redefined fair market value effective 2022-01-01 as "the total of the depreciation plus any amortized amounts pursuant to the lease agreement plus any down payments" — NOT the vehicle price. Modeling this as the vehicle price overstates the tax roughly threefold. The "agreed upon value" method applies only to business-use leases with an adjustable rental price and is not modeled.
Source: Georgia primary guidance · reviewed 2026-08-23
Worked example
A $45,000 vehicle negotiated to $41,500, leased for 36 months at 60% residual and a 0.00185 money factor, with $2,000 down and a $895 acquisition fee.
What's in the taxable base
Georgia against the other states
| State | Due at signing | Total tax | True cost/mo |
|---|---|---|---|
| New York | $3,292.10 | $795.34 | $574.41 |
| Florida | $2,526.57 | $1,073.01 | $582.13 |
| Georgia | $3,574.41 | $1,077.65 | $582.25 |
| Ohio | $3,640.07 | $1,143.30 | $584.08 |
| Illinois | $3,739.48 | $1,242.72 | $586.84 |
| Washington | $2,531.54 | $1,251.85 | $587.09 |
| New Jersey | $3,814.05 | $1,317.28 | $588.91 |
| California | $2,677.78 | $1,441.55 | $592.36 |
| Pennsylvania | $2,541.47 | $1,609.52 | $597.03 |
| Texas | $5,090.51 | $2,593.75 | $624.37 |