Lease tax by state
How is a car lease taxed in Mississippi?
Tax is added to each monthly payment. The Mississippi state-level rate is 5.00%.
- Method
- Tax on each monthly payment
- State base rate
- 5.00% (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. Mississippi's state-level lease sales-tax rate is 5.00% (before any local add-on).
Your cap-cost reduction (cash down, trade equity, or rebates applied as a down payment) IS taxed in Mississippi, so putting more cash down does not escape the tax.
The detail
Long-term consumer auto leases are taxed at the same rate as a sale (5% for passenger vehicles <=10,000 lbs) applied to EACH lease payment. A separate additional 6% rental tax applies only to short-term rentals of 30 days or less, not to long-term leases. Cap-cost reduction is part of taxable lease consideration.
Local add-ons
Generally none on the lease itself; Mississippi has very limited local sales taxes. (Vehicles 10,000 lbs+ / property carriers taxed at 3%.)
See what this does to your true monthly cost
Mississippi'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 Mississippi) to fold the tax into one honest, comparable effective monthly figure.
Estimate my Mississippi lease cost →Source: salestaxhandbook.com · Medium 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 Mississippi Department of Revenue before you sign.