# TX Lease - sales tax reduction via trade in

**URL:** <https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743>\
**Category:** Ask the Hackrs\
**Tags:** tx, trade-in, tax\
**Created:** [November 14, 2024, 9:48pm UTC](https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743 "2024-11-14T21:48:36Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Organix](https://leasehackr.b-cdn.net/letter_avatar/organix/32/5_5575768a8748004e209b776fc1b2916d.png) [@Organix](https://forum.leasehackr.com/u/Organix)\
**Post date:** [November 14, 2024, 9:48pm UTC](https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743/1 "2024-11-14T21:48:36Z")

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Hello Hackrs!

Can you use a trade-in to offset sales Tax on a Lease in TX? I aim to use my trade-in to lower my sales tax burden and ask that my equity be returned to me instead of being applied toward the lease. I this possible?

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**Author:** ![valek.jw](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/valek.jw/32/109883_2.png) [@valek.jw](https://forum.leasehackr.com/u/valek.jw)\
**Post date:** [November 14, 2024, 10:57pm UTC](https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743/2 "2024-11-14T22:57:44Z")

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If the vehicle you are trading is owned outright by you, or is traditionally financed then it will reduce your sales tax burden.

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**Author:** ![Organix](https://leasehackr.b-cdn.net/letter_avatar/organix/32/5_5575768a8748004e209b776fc1b2916d.png) [@Organix](https://forum.leasehackr.com/u/Organix)\
**Post date:** [November 14, 2024, 11:42pm UTC](https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743/3 "2024-11-14T23:42:05Z")

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Yes, the vehicle is owned outright

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**Author:** ![valek.jw](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/valek.jw/32/109883_2.png) [@valek.jw](https://forum.leasehackr.com/u/valek.jw)\
**Post date:** [November 15, 2024, 8:35pm UTC](https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743/4 "2024-11-15T20:35:27Z")

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Then you will pay sales tax on the difference between the value of the new car and the trade in.

Before you trade be sure you check your car’s value with carmax, carvana, autonation, etc. Sometimes a dealer will low ball your trade. In that situation your savings have been eliminated if they are giving you thousands of dollars less than someone else.

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**Author:** ![system](https://leasehackr-assets.b-cdn.net/original/3X/f/7/f76e5433b417879e07ad6f0cee47e239c8f1cdd4.png) [@system](https://forum.leasehackr.com/u/system)\
**Post date:** [January 14, 2025, 8:36pm UTC](https://forum.leasehackr.com/t/tx-lease-sales-tax-reduction-via-trade-in/616743/5 "2025-01-14T20:36:25Z")

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