Calculator · Lease tax by state
New York 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.
How New York calculates it
Pub. 839: "The total sales tax due under the lease is due at the inception of the lease." Base is (monthly payment x term) + down payment + manufacturer rebates + taxable fees (Examples 1-3). Manufacturer-reimbursed rebates ARE taxable; dealer discounts not reimbursed by a third party are not. Trade-in already reduces the taxable base through reduced payments and must NOT be credited a second time. Refundable security deposits are not taxed. Rate is the combined state+local rate where the LESSEE resides, not the dealer; local adds roughly 3-5 points to the 4% state rate.
Source: New York 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
New York 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 |