Lease tax by state
How is a car lease taxed in Missouri?
Tax is added to each monthly payment. The Missouri state-level rate is 4.23%.
- Method
- Tax on each monthly payment
- State base rate
- 4.23% (excludes local add-ons)
- Down payment taxed?
- Yes — cap-cost reduction is taxed
- As of
- 2026-06-20
What this means for your lease
In plain English: tax is added to each monthly payment. Missouri's state-level lease sales-tax rate is 4.23% (before any local add-on).
Your cap-cost reduction (cash down, trade equity, or rebates applied as a down payment) IS taxed in Missouri, so putting more cash down does not escape the tax.
The detail
For leases longer than 60 days, Missouri taxes each monthly lease payment (not the full vehicle price); the 4.225% state rate plus local rate applies per payment at the lessee's location. Tax begins from day 31 of the lease (first 30 days handled differently). See 12 CSR 10-103.350 and DOR rental/leasing guidance. Down payment / cap-cost reduction is taxable.
Local add-ons
Local sales taxes apply on top (city/county/district), commonly ~2%-5%; sourced to the Missouri resident's address.
See what this does to your true monthly cost
Missouri's tax method changes the real cost of a lease — sometimes more than the headline payment does. Drop your numbers into the calculator (we preselect Missouri) to fold the tax into one honest, comparable effective monthly figure.
Estimate my Missouri lease cost →Source: law.cornell.edu · High confidence · Reviewed 2026-06-20. Tax method is researched and cited per state; rates are state-level and exclude local add-ons. This is an estimate — verify with your dealer or the Missouri Department of Revenue before you sign.