Lease taxes vs purchase taxes

Apples-to-oranges tax bases make “which is cheaper” threads collapse. Separate the tax logic before you compare monthly numbers.

Purchase tax logic

Purchases typically tax a taxable vehicle price after trade rules, then add title/registration/doc fee. That is what TagTally models.

Lease tax logic

Leases often tax the stream of payments and certain fees. Capitalized cost, residual, money factor, and acquisition fee change both payment and tax. State rules vary widely.

Comparison hygiene

For purchases: OTD and total interest if financed. For leases: drive-off, total of payments, disposition fees, mileage caps — with tax lines labeled. Never compare bare monthly payment alone.

On this bay

• Purchase OTD estimator
• OTD math

General information, not personalized advice.