How to Pay Taxes Up Front on a Lease

Most lease advertisements ask for a down payment and a separate payment of taxes and fees. States calculate taxes on leased vehicles differently. Many states also issue tax rates that differ by city, town or county, so you'll have to find out your tax rate to calculate your charges. Some states tax leased vehicles on monthly payment amounts, including interest charges, some calculate the amount before interest charges and others charge tax on the total cost of the vehicle.

Instructions

1

Ask the dealer or salesperson for the total taxable cost of the leased car and which fees are taxable. Add the taxable cost and fees together.

2

Determine your area's tax rate by visiting your state's motor vehicle website or asking the dealership. If you purchase the vehicle from a state other than your own, your dealer will likely collect taxes for your state and submit the costs on your behalf.

3

Multiply your taxable cost by your state's tax rate. Ask your dealer for the total amount of tax charges, as the dealer must collect the fees for your state. Tell your salesperson that you want to pay your taxes up front.

4

Pay your down payment and taxes during the time you sign your lease contract. Depending on the total amount of your down payment, your dealer may accept a credit card or personal check.