Do you pay tax on the full price of the car in MA if you lease?

seabiscurt

When leasing a car in MA, do you pay sales tax on the full value of the new vehicle, or just the lease amount? I was under the impression it was just lease amount but had a dealer tell me it was on the full price. If that's the case, and I pick up my option to buy at the end, then I don't pay tax on that amount? This has been harder to confirm than expected, hoping someone here can please help. Thank you in advance.

kyfdx

seabiscurt said:

When leasing a car in MA, do you pay sales tax on the full value of the new vehicle, or just the lease amount? I was under the impression it was just lease amount but had a dealer tell me it was on the full price. If that's the case, and I pick up my option to buy at the end, then I don't pay tax on that amount? This has been harder to confirm than expected, hoping someone here can please help. Thank you in advance.

If you live in MA, then the lease payment is taxed at 6.25%.
CAP reductions upfront (rebates and downpayments) are taxed upfront.