Calculator · Lease tax by state
Texas car lease tax
Tax is assessed once on the full vehicle price, as if the leasing company bought the car outright, and passed through to you at signing. Your monthly payments are not taxed.
How Texas calculates it
34 Tex. Admin. Code s 3.70: motor vehicle sales/use tax is due from the LESSOR on "the purchase price of the motor vehicle to the lessor" at the time of purchase, and "subsequent lease payments are not subject to the tax." The cost is passed through to the lessee at signing. This is the largest divergence from monthly-tax states and the most common error in public lease calculators. No trade-in credit is addressed for leases.
Source: Texas 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
Texas 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 |