State Tax Guides
Lease vs Buy a Car, State by State
The lease-versus-buy math swings hard on local tax law. Some states tax only your monthly lease payment; others tax the full price of the car upfront — even when you never own it. Pick your state to see its 2026 sales tax rate, how it taxes leases, and what that means for your decision.
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Alabama9.24% tax · Taxed monthlyAlaska1.76% tax · Taxed monthlyArizona8.37% tax · Taxed monthlyArkansas9.47% tax · Taxed monthlyCalifornia8.68% tax · Taxed monthlyColorado7.77% tax · Taxed monthlyConnecticut6.35% tax · Taxed monthlyDelaware0% tax · Taxed monthlyFlorida7.02% tax · Taxed monthlyGeorgia7.35% tax · Taxed upfront (full price)Hawaii4.44% tax · Taxed monthlyIdaho6.02% tax · Taxed monthlyIllinois8.82% tax · Taxed upfront (full price)Indiana7% tax · Taxed monthlyIowa6.94% tax · Taxed monthlyKansas8.7% tax · Taxed monthlyKentucky6% tax · Taxed monthlyLouisiana9.55% tax · Taxed monthlyMaine5.5% tax · Taxed monthlyMaryland6% tax · Taxed upfront (full price)Massachusetts6.25% tax · Taxed monthlyMichigan6% tax · Taxed monthlyMinnesota7.49% tax · Taxed upfront (total payments)Mississippi7.07% tax · Taxed monthlyMissouri8.25% tax · Taxed monthlyMontana0% tax · Taxed monthlyNebraska6.94% tax · Taxed monthlyNevada8.23% tax · Taxed monthlyNew Hampshire0% tax · Taxed monthlyNew Jersey6.63% tax · Taxed monthlyNew Mexico7.83% tax · Taxed monthlyNew York8% tax · Taxed upfront (total payments)North Carolina6.99% tax · Taxed monthlyNorth Dakota6.96% tax · Taxed monthlyOhio7.24% tax · Taxed upfront (full price)Oklahoma8.98% tax · Taxed monthlyOregon0% tax · Taxed monthlyPennsylvania6.34% tax · Taxed monthlyRhode Island7% tax · Taxed monthlySouth Carolina7.44% tax · Taxed monthlySouth Dakota6.4% tax · Taxed monthlyTennessee9.55% tax · Taxed monthlyTexas8.2% tax · Taxed upfront (full price)Utah7.19% tax · Taxed monthlyVermont6.36% tax · Taxed monthlyVirginia5.75% tax · Taxed monthlyWashington9.29% tax · Taxed monthlyWashington DC6% tax · Taxed monthlyWest Virginia6.5% tax · Taxed monthlyWisconsin5.43% tax · Taxed monthlyWyoming5.36% tax · Taxed monthly
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The calculator applies your state's tax rate and lease tax method automatically.
Rates are combined state plus average local sales tax and are informational only, not tax or financial advice. Confirm current rates with your state DMV or dealer.