Lease tax by state
How is a car lease taxed in Utah?
Tax is added to each monthly payment. The Utah state-level rate is 4.85%.
- Method
- Tax on each monthly payment
- State base rate
- 4.85% (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. Utah's state-level lease sales-tax rate is 4.85% (before any local add-on).
Your cap-cost reduction (cash down, trade equity, or rebates applied as a down payment) IS taxed in Utah, so putting more cash down does not escape the tax.
The detail
Utah taxes the lease on each monthly payment at the combined sales tax rate (state base 4.85% plus local). Sales tax is ALSO due on any down payment / capitalized cost reduction made at signing. Tax sourced to the lessee's location.
Local add-ons
Local + county + transit taxes apply on lease payments; combined rates commonly range ~6.1%-8.7% depending on location.
See what this does to your true monthly cost
Utah'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 Utah) to fold the tax into one honest, comparable effective monthly figure.
Estimate my Utah lease cost →Source: tax.utah.gov · 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 Utah Department of Revenue before you sign.