Calculator · Lease tax by state
Washington 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.
Rate
7.000%
before local surtax
Paid
Monthly
spread over the term
Cost rank
6 of 10
cheapest first
How Washington calculates it
The 7.0% base combines the 6.5% state retail sales tax with the separate motor vehicle sales/lease tax under RCW 82.08.020(3), which ROSE from 0.3% to 0.5% effective 2026-01-01. Local rates are large in Washington and must be supplied. The first 36 months of lease payments are partially exempt from the local public-safety component; payments after month 36 use the regular local rate.
Source: Washington 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
Tax added to each payment$34.77
Monthly payment$531.54
Due at signing$2,531.54
Total tax over the lease$1,251.85
True cost per month$587.09
What's in the taxable base
Manufacturer rebatesNot taxed
Trade-inReduces the base via lower payments
Cash down paymentNot separately taxed
Local surtaxYes — varies by locality
Washington 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 |