Leased Car

If Your Car is Leased


Leased cars are still subject to excise tax. However, whose obligation for payment is determined by any terms in the original leasing contract. If not addressed, the driver should inquire of the leasing company. Normally, if the car is registered in the driver's name, the registration creates an obligation and liability for payment of excise tax upon the driver, not the leasing company. Even if the car is registered in the leasing company's name, however, there may be terms in the contract passing on any taxes, excise included, onto the driver, so it is best to check the contract.