Calculator · Lease tax by state
Illinois car lease tax
Tax is assessed once at signing on the sum of every scheduled payment plus your down payment, rather than being added to each monthly bill.
Rate
6.250%
before local surtax
Paid
At signing
in one sum
Cost rank
5 of 10
cheapest first
How Illinois calculates it
For leases longer than one year entered into on or after 2015-01-01, the taxable selling price is "the amount due at lease signing, plus the total amount of all lease payments" (Form ST-556-LSE), reported at inception. A trade-in may NOT reduce the taxable price and must be added back — modeled explicitly. Chicago and Cook County add substantial local tax.
Source: Illinois 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.
Adjusted capitalized cost$40,395.00
Residual value$27,000.00
Monthly depreciation$372.08
Monthly rent charge$124.68
Payment before tax$496.76
Monthly payment$496.76
Tax collected at signing$1,242.72
Due at signing$3,739.48
Total tax over the lease$1,242.72
True cost per month$586.84
What's in the taxable base
Manufacturer rebatesNot taxed
Trade-inAdded back — no reduction allowed
Cash down paymentIncluded in the base
Local surtaxYes — varies by locality
Illinois 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 |