Calculator · Lease tax by state
Pennsylvania car lease tax
Tax is charged on each monthly payment as it is billed, so it is spread across the term rather than owed at signing.
How Pennsylvania calculates it
The 9% base combines 6% state sales tax with the separate 3% Public Transportation Assistance motor vehicle lease tax, which applies to leases of 30 days or more on "the total lease payment including down payment and accelerated lease payments". The taxes do not compound — neither is included in the other base. Local sales tax adds 2% in Philadelphia and 1% in Allegheny County, applying to the sales tax component.
Source: Pennsylvania 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
Pennsylvania 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 |