Lease Transfer Sales Tax in Texas

Ask the Hackrs
1

I am a newbie here currently leasing a 2015 Nissan Leaf which is ending in a month. I am looking at swapalease and leasetrader to take over a lease as I need a car for about 2 years. I am interested in 2018 Nissan Leaf saw many good deals on from California.

leasehackr forums have been of great help and through that I came to know that lease transfers may have to pay extra sales tax in Texas. I did my homework and searched through the forums and found three posts on this topic but there was no definite answer.

Can somebody who has experience taking over a lease chime in and throw some light here? Especially for the Texas resident assuming a lease from out of state .

For anybody interested in similar previous posts Leasing and Texas
Lease Assumption in Texas from an out of State Lease - Taxes?
Taxes with a lease transfer in Texas - how does it work?

2

If you assume a lease in Texas that you have brought in from another state, you will owe the Texas motor vehicles tax on the current fmv of the car when you register it. The rate is 6.25%. There is a credit for tax paid to another state, but on a lease in most states they wouldn’t have paid that up front.

3

@Thestallion29
Few questions -

  1. I have been reading that you are supposed to pay 6.25% tax on the original sales price. You are taking of fair market value. which one is right?
  2. Is it legal or advisable to just not change the plate and use the out of state plate? I dont know, and thats why I am asking
    Thanks!
4

On a new car sale it’s 6.25 of purchas price. In a private party sale of a used car or a car brought into Texas from out of state you pay use tax at 6.25 of standard presumptive value (which is essentially fmv). Regarding not registering the car in Texas, is the out of state lessee going to let you keep the registration in their name at their address? By law you have to register the car in the state within 30 days. It becomes an issue if you get pulled over and have one state license plate and one state drivers licens. If you have an out of state laws cease to match the plates you could get away with it.

5

Thanks a lot @Thestallion29 for answering my questions!

I guess taking over a lease is no longer a good option. Its sad to miss out on all those good deals :frowning:

Thanks again

6

You can take one over if it’s already in Texas…

7

If the lease originated in Texas then you just pay to get the plates transferd over in your name?

8

Yes, just pay registration

1 Like
9

Is that certain. I am also looking into leasing for a short term. But if i have to pay sales tax after transfer, thats a deal breaker. Finance companies refer to call DMV. Every agent i have talked to on DMV says that yes, i have to pay sales tax. Just need to be sure before i pursue…
Thank you

10

If the car was originally leased in Texas and motor vehicle tax was already paid you won’t pay it again… there is no additional sale…

11

There’s a standard presumptive value calculator on the website.

12

when you BUY a used car from someone you have to use the presumptive
Calculator to pay sales when you register cause the title is changing. When you transfer a lease the owner of the vehicle is not changing so there is no title change. No title change no sales tax (assuming the Texas sales tax was paid on original sale from dealer to lessor)