Apologies if this question has been asked and answered before. Are the incentives such as lease cash and loyalty taxable in PA? If so, do both sales tax (6%) and lease tax (3%) apply? Thank you.
No, they are not. Info here: Sales tax on cars and vehicles in Pennsylvania
Here: What Is Pennsylvania (PA) Sales Tax on Cars?.
And here: https://www.edmunds.com/car-buying/what-fees-should-you-pay.html
Sorry I’m a little late.
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Thanks. All 3 articles state that incentives are not taxed in PA contrary to what Hersheysweet said. I paid tax on incentives 2 times by Lexus but paid no tax on my caddy lease.
To be fair, the second article just cites the first as its source.
Lol, you didn’t expect me to read them did you.
I hate to admit that your post sent me down a rabbit hole trying to find anything from PA that actually defines this, and I can’t find anything that says one way or another what the actual answer is, other than your first link (which unfortunately doesn’t cite its sources).
I was wrong, you are correct. But some sources are out of date. Doc fee is now 389, and regulated by state as of 2020.
Did I just spend 10 minutes reverse matching the last contract I have? Yes. Worth it? Yes. Rebates, dealer fees, and registration is not taxed in PA apparently. F it dads getting an Etron.
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Hope you didn’t pay tax on all those etron rebates!
Just verified that I paid 9% tax on incentives on all 3 Lexus leases since 2015. Apparently the acquisition and doc fees are taxed at 6%. Hope that more hackers will weigh in as I’m still confused.
How are you verifying?
That doesn’t make sense, if you PM me a contract I can verify.
Would love to verify which of the following incentives on a 4xe are taxed in PA. Working deal with MD dealer, but live in PA, not sure if that makes a difference. I suspect all are taxed but just want to verify. I’m working on a deal.
$7500 FEDERAL
$3000 MABC CARB
$500 Mid Atlantic Regional Lease Bonus Cash
$1000 Private TDM
Thanks in advance.
Typically all are taxed.
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Have you tried working with Heritage Jeep in Owings Mills or Parkdale? They also have dealerships in PA and can easily move cars around to different locations.
I thought all rebates in PA were untaxed regardless of the state of purchase.
https://www.caranddriver.com/research/a32812896/pa-sales-tax-on-cars/#
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Looks like there are inconsistent opinions based on past experience of others.
I was always under the impression they were taxed, but reverse calculating leases with big incentives (4xe, volvo) seem like they aren’t. Difference between tax and untaxed is negligible with cars that only have 1-2k in incentives.
Incentives were untaxed for PA anytime I’ve leased a vehicle (in and out of state), including the 4xe.