Hello all - I’m contemplating leasing for the first time and have a tax-related question in Maryland. Does Maryland tax “twice” (may not be the right word)? Essentially, does Maryland levy a Sales Tax (6%) on the entire price of the new vehicles, plus another Use Tax (6%) on EACH payment?
My dealership gave me a quote, and after running several different calculators myself, the only way I could get close to the dealership monthly payment (within a couple dollars) is to apply a 6% sales tax to the new vehicle; then after calculating a monthly payment, add another 6% use tax. I am using the same MSRP, selling prices, residual, money factor, and rebates as the dealership. Thank y’all so much for the help!!
Maryland taxes vehicles in a similar way to Texas, where you pay full tax on the entire sales price unfortunately. It’s a single applied tax though on the selling price of the vehicle unless you have a separate local county or city leasing tax like Chicago does.
Did your quote include the MF they used? That’s normally the main way they bump up the cost of the lease, as most of the other numbers are set in stone.
Yep, I watched the dealer enter the base money factor that I confirmed with the Edmunds forum, 299 doc fee, and 311 MVA/DMV tags/title etc., acquisition and no other dealer charges, which is why I’m so stumped unless there are separate sales tax on the vehicle, and a use tax on each payment. The MVA/DMV website info is pretty vague. No other taxes in my county…
Post a calculator link and people will be able to see if there’s any discrepancies: https://leasehackr.com/calculator and click the ‘share your numbers’ link.
I do toyota leases for Maryland applicants through a bank that gives amazing rates. If interested in a Toyota let me know! It will certainly help offset some of those crazy high taxes.
Sales tax in MD is levied on the selling price. However, the best way to address your concern is for you to request the dealer’s lease worksheet and post it. That will tell me everything I need to know. I’ll be able to tell you exactly how the sales tax is being applied.
