sales tax when leasing vehicle in texas

bachsoloist

Hi, in Texas do you have to pay sales tax on a leased vehicle upfront?? Or Can it be included in a monthly payments or paid at the end of the lease term when I am ready to buy the leased car out?

many thanks

Michaell

bachsoloist said:

Hi, in Texas do you have to pay sales tax on a leased vehicle upfront?? Or Can it be included in a monthly payments or paid at the end of the lease term when I am ready to buy the leased car out?

many thanks

The sales tax is calculated against the entire selling price.

You have the option of either paying that amount up front, or adding it to the sales price and make it part of the monthly payment.

You cannot pay the tax at the end of the lease term.

bachsoloist

If I include it in monthly payment, I will be charged interest rate on the tax? Thank you for your reply

Michaell

bachsoloist said:

If I include it in monthly payment, I will be charged interest rate on the tax? Thank you for your reply

You will.

But, if you pay the entire amount up front and the vehicle is totaled, you may find it difficult to get it refunded from the state.