Car Lease Taxes and Fees in North Carolina

As of  September 2021, here’s a general guide to some of the taxes and fees you might encounter when leasing a car in North Carolina. Please note that specific rates and fees may have changed, so it’s always a good idea to check the most current information from local North Carolina government websites or consult with a tax professional.

### Taxes

1. **Sales Tax**: North Carolina imposes a sales tax on the lease of a vehicle. The tax is applied to each lease payment and is typically required to be paid monthly. As of 2021, the general state tax rate was 4.75%, but local municipalities might impose additional taxes, which can make the total rate higher.

2. **Property Tax**: When you lease a car in North Carolina, you’re also responsible for paying an annual property tax on the vehicle, which is based on the assessed value of the car. The rate can vary depending on your location within the state.

### Fees

1. **Acquisition Fee**: This is a fee charged by the leasing company to arrange the lease. It’s sometimes rolled into the monthly lease payment or paid upfront.

2. **Disposition Fee**: This fee is charged by some leasing companies to cover the cost of cleaning and selling the vehicle once the lease ends.

3. **Security Deposit**: Some leases require a refundable security deposit, which is returned to you at the end of the lease, assuming the car is returned in acceptable condition.

4. **Registration Fee**: You’ll need to pay to register the vehicle in North Carolina, and this fee can depend on the type and weight of the vehicle.

5. **Title Fee**: There’s a fee to have the vehicle titled in your name, even though it’s technically owned by the leasing company.

6. **License Fee**: This fee is for the license plate and is separate from the registration fee.

7. **Documentation Fee**: Dealerships might charge a fee to cover the cost of preparing and filing lease paperwork.

8. **Excess Mileage Fee**: If you go over the mileage limit set in your lease, you’ll be charged a per-mile fee.

9. **Wear and Tear Fee**: If the vehicle is returned with damage beyond “normal wear and tear,” you may be charged additional fees.

### Additional Considerations

– **Insurance**: While not a tax or fee, remember that you’ll need to maintain insurance on the leased vehicle, and there may be specific coverage amounts required by the leasing company.

– **Early Termination Fee**: If you end the lease early, you may be subject to an early termination fee.

Always read your lease agreement thoroughly and make sure you understand all the terms, including the taxes and fees you’ll be responsible for paying. And, as mentioned, for the most accurate and up-to-date information, please consult with a professional or check the latest resources available from the state of North Carolina.