Hey guys, need advice from the hackers out west. How is lease tax calculated in CO?
In PA tax is 9% monthly. What happens when moving a car leased originally in PA to CO? Thanks
Colorado doesn’t charge tax on the full cost of a vehicle for leases like some states - tax is only billed on the monthly payment, incentives, & cap cost reduction. If you buy the vehicle at lease end, tax is charged on the residual.
The state portion of the tax is 2.9%, but the rest varies depending on which municipality the vehicle is registered to. Total tax rate is most likely between 7% and 9% unless you’re in an unincorporated area or somewhere else not subject to local taxes.
Hope that helps…
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exactly what I needed to know, thanks!
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