Question about tax on a lease in NY State

Ask the Hackrs
1

I have a question about leasing in NY State. If I trade in a car worth 25k and my lease payments on a new car add up to 30k, do I pay sales tax on 30k or 5k?

2

If im not mistaken you only get tax on what the monthly rent charge

Theres missing details here, are you putting all that money towards downpayment?

3

$5k ONLY but you need to own the car. Trading car cannot be even financed or leased.

4

You pay tax on the sum of the base payments. Below is an article I wrote detailing how taxes are determined in Illinois, but it applies to NY as well.

Illinois Sales Tax Calculations.pdf (1.2 MB)

Also, here are the NY Tax Guidelines…

NY Sales Tax pub839.pdf (359.6 KB)

5

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