Sales Tax on Dealer Discount - California lease

joejoe19

I am aware that Incentives and Rebates from the Manufacturer are taxed in California. But I wanted to know whether Dealer Discounts are taxable as well.

So often I see dealers printing out Lease quotes for me which include a section simply labeled "taxes." Rarely is a breakdown offered showing what figure is being taxed.

kyfdx

joejoe19 said:

I am aware that Incentives and Rebates from the Manufacturer are taxed in California. But I wanted to know whether Dealer Discounts are taxable as well.

So often I see dealers printing out Lease quotes for me which include a section simply labeled "taxes." Rarely is a breakdown offered showing what figure is being taxed.

No, dealer discounts are not taxed,

Some lease deal sheets show a total amount of tax. It’s often the total amount of the monthly tax, over the lease term. Other dealers may show you a “purchase option” that shows a tax number that is irrelevant for a lease.