Leasing a new vehicle can be a smart choice for many drivers, but the cost can vary significantly depending on where you live. In some states, higher taxes, fees, and market conditions drive up leasing expenses, making it more expensive to get behind the wheel of a new car. This list covers the 14 states where leasing a vehicle will cost you the most, helping you understand where prices are steepest.
Contents
California
California’s high sales tax and additional vehicle registration fees make leasing a vehicle costly. On top of that, environmental fees and other regulatory costs, such as smog certification, add to the overall expense. Insurance premiums in the state are also higher than the national average, contributing to California’s spot at the top of the list.
New York
Leasing a vehicle in New York is expensive primarily due to state and city taxes. In New York City specifically, leasing comes with a hefty 8.875% sales tax, and luxury vehicles may face additional surcharges. The high cost of living and dense traffic also contribute to the overall expense, with insurance rates being among the highest in the country.
New Jersey
New Jersey stands out for its high auto insurance rates, which significantly impact leasing costs. Additionally, the state’s vehicle registration fees are higher than the national average. Leasing customers also face sales tax and luxury surcharges, which can further elevate the total cost of a lease.
Connecticut
In Connecticut, taxes and fees are major contributors to high leasing costs. The state imposes a 6.35% sales tax on leases, and luxury cars costing over $50,000 are taxed at an even higher rate. Additionally, vehicle registration fees and property taxes on leased vehicles are steep, making leasing an expensive option.
Florida
Florida’s booming demand for vehicles drives up leasing prices, particularly in urban areas like Miami and Orlando. The state’s 6% sales tax on car leases adds to the total, along with additional county-level surtaxes. Florida’s high insurance rates also contribute to making it one of the most expensive states for leasing a vehicle.
Massachusetts
Massachusetts has one of the highest vehicle excise taxes in the country, which impacts leasing costs. In addition, leasing customers face a 6.25% sales tax on their monthly payments. Insurance costs in the state are also above the national average, driving up the overall expense of leasing.
Illinois
Vehicle registration fees in Illinois are among the highest in the U.S., with additional local taxes that vary by county. The state also applies a use tax on leased vehicles, adding another layer of cost. These factors, combined with high insurance premiums, make Illinois an expensive place to lease a vehicle.
Texas
Texas has no state income tax, but its high sales tax, which can reach up to 8.25% in some areas, significantly raises leasing costs. Additionally, vehicle registration fees and insurance premiums contribute to making Texas one of the most expensive states to lease a new car.
Pennsylvania
In Pennsylvania, leasing a car comes with a 6% sales tax, and local taxes can increase this rate to 8% in certain areas. Vehicle registration fees and high insurance rates in urban areas like Philadelphia and Pittsburgh further contribute to the state’s inclusion on this list.
Nevada
Nevada’s high insurance premiums, driven by factors such as high accident rates and repair costs, push up the overall cost of leasing. While the state has no income tax, its 8.1% sales tax and high vehicle registration fees make leasing a car an expensive option.
Washington
Washington’s high sales tax, which can reach up to 10.4% in some counties, significantly affects leasing costs. Additionally, registration fees are higher than average, and the state also charges a “motor vehicle excise tax,” which adds to the overall cost of leasing.
Maryland
Maryland is known for its steep vehicle taxes and fees. The state’s 6% sales tax on leased vehicles, combined with high insurance premiums, makes leasing an expensive option. In certain areas, additional local taxes further raise the cost.
Georgia
Georgia imposes a 6.6% sales tax on leased vehicles, along with high insurance rates due to a combination of factors such as dense traffic and accident rates. Vehicle registration fees and the “Title Ad Valorem Tax” also make leasing more costly in the state.
Virginia
In Virginia, vehicle registration and insurance fees are among the highest in the country. Leasing is further affected by the state’s 4.15% sales tax, along with additional personal property taxes imposed on leased vehicles, adding to the overall expense.
This article originally appeared in MyCarMakesNoise.
More from MyCarMakesNoise
18 Myths About Premium Gasoline You Need to Stop Believing
Many drivers assume premium gasoline is always the better choice, but that’s not always true. From claims of better performance to improved fuel economy, plenty of myths surround this high-octane option. Read More
8 Famous Limousines from Hollywood Blockbusters
Limousines have long been a symbol of luxury and power, making them the perfect vehicles for memorable moments in Hollywood blockbusters. From sleek, high-tech rides to extravagant, custom designs, these limos add flair and character to the films they appear in. Read More
13 Tank Designs That Didn’t Live Up to Their Promises
Tank designs throughout history have aimed to revolutionize warfare, offering unmatched firepower, protection, and mobility. However, not every tank lived up to its promises. Read More
