Taxes on Leases in TX (how do tax credits work)

Ask the Hackrs
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Can someone please explain how tax credits work for leases in TX?

Basically, I have a FL Drivers License but will be spending time in TX (w/ an address in both states), and am wondering which state is better for leasing a new vehicle.

I understand from researching the diff. in how taxes are applied (on MSRP upfront in TX vs. on monthly payments in FL), but it’s unclear why for certain broker deals I’m seeing in TX, the calculator has ~1.25-1.75% tax, vs 6%+ actual state tax in TX. I imagine it’s from credits but just want to understand the mechanics.

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Generally, it would better to lease in Florida unless the lender in Texas is offering tax credits. Texas taxes on the selling price, but if you see the tax rate set to 1 or 1.25, that means the lender is offering tax credits on that model. Especially if you already have a FL DL and insurance policy, prob wouldn’t make sense to switch everything over unless you’ll have significant savings on insurance premiums

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Is there a way to find out which cars have lender tax credit in TX?

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We have a list at the below link for BMW.

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Mfr and dealer uses it as sale leverage on slow moving models. I have been denied only on Toyota and Lexus hot selling models(but available on Taco and tundra) Otherwise I have had decent luck on securing partial to full credit on many make and model.

There is no centralized SSOT on this and changes every month. Checking thru multiple dealer is sure way to gather current datapoints.

Your out of state residence could murky up the deal.

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