Lease vs buy in Texas

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

Texas taxes the full capitalized cost of a lease upfront — unusual vs. most states. This reduces the cash-flow advantage of leasing.

Run the numbers with Texas's tax rate

The calculator's "Sales tax rate" field defaults to a national average. The link below opens it pre-set to Texas's base rate of 6.25% — adjust to your county's combined rate for full accuracy.

Open calculator with Texas tax rate →

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