Lease vs buy in California

California's tax treatment of leases vs purchases affects your total cost comparison. Here's what to know.

California taxes each lease payment (not upfront). Base rate 7.25% + local additions up to 3%. ZEV incentives can affect EV lease economics significantly.

Run the numbers with California's tax rate

The calculator's "Sales tax rate" field defaults to a national average. The link below opens it pre-set to California's base rate of 7.25% — adjust to your county's combined rate for full accuracy.

Open calculator with California tax rate →

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