Texas taxes and trade in credits for leases

[eric_n_dfw]

As my fellow Texans know, our state charges 6.25% sales tax on the full price of an automobile on leases, unlike other states where you pay sales tax incrementally with each lease payment.

My question is about trade-ins: when you buy a car, the value of your trade in is deducted from the new car's price when determining the sales tax. Is the same rule applied to leases?

If, say, I negotiate a lease cap cost of $30,000 and have a trade in valued at $20,000, would I pay sales tax on $10,000? (as I would if I was purchasing?)

[sinnombre]

Yes , you are on the right track . However , things can get complicated when they have lease tax credits available . The good news is , the credits can lower your taxes even further . The bad news is , you never know if or how much if anything .