SicK TypeS

Does anyone know how tax is calculated on a lease in NJ?

juniorbean

iTrader: (5)

Even though you're leasing... the lease is based on a purchase price. Sales tax should be calculated based on that price. Whether you pay it up front or roll it into the payments would be up to you...

n-spring

I think your answer is on page 16 of this guide:

http://www.nj.gov/lps/ca/ocp/autogide.pdf

ThermonMermon

paying tax up front is dangerous. if you move to a different state while you are still under finance/lease term, there is a chance that you will need to pay taxes all over again. there are reciprocity tax laws state-to-state.

Bearcat94

I'm sure it varies state-to-state, but here (NC) it's the auto sales/use tax, 3%, and is based on the lease payment amount. So, if the lease payment is, say, $400, the tax is $12 and the total monthly lease payment is $412.