Car Leasing 301 - Car Lease Taxes & Fees

Can't Avoid the Taxman - Car Lease Taxes and Fees

When it comes to leasing a car and paying taxes and / or fees, always remember that the tax rate is defined by the state or province in which you live, and additional charges or fees from the leasing company may differentiate from lease company to lease company. While certain fees and charges are not intentionally hidden from the consumer, or well shouldn’t be, they may be named or labeled differently between different leasing companies.

Typical car lease charges, taxes and fees may apply to the following:

• First payment
• Security deposit
• Bank fee (sometimes called the acquisition fee (define: acquisition fee)
• Disposition Fee
• Down payment – Taxes paid on down payment
• Documentation, License, Title, Tag and Registration fees

Part II: Car Lease Taxes & Fees - First Payment