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Equipment Rental Agreement Template

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Equipment Rental Agreement Template

Updated March 22, 2024

An equipment lease agreement is a legal contract between an owner of an item that is leased to a renter in exchange for payment. The rental amount generally depends on how long the equipment is leased and its usage.

Common Equipment Types

  • Appliances
  • Electronics
  • Furniture (for an event)
  • Gym equipment
  • Heavy machinery
  • Medical equipment
  • Power tools
  • Vehicles

Equipment Rental Tax Laws

State Personal Property Vehicles  Source
 Alabama Linens/Garments 2%; all other property is levied at 4% 1.5%* Alabama Dept. of Revenue
 Alaska None Passenger vehicles are 10% and recreational vehicles are 3%. Alaska Dept. of Revenue
 Arizona Transaction Privilege Tax (TPT) 6.6% plus county fees* Arizona Dept. of Revenue
 Arkansas 1% levied in addition to gross receipts tax* 10%* Arkansas Dept. of Finance and Administration
 California 7.25% (excluding motion picture films and tapes, linen supplies, and mobile transportation equipment) None* California Dept. of Tax and Fee Administration
 Colorado None for rental durations lasting 3 years or less $2.00/per day plus local surcharges* Colo. Rev. Stat. § 43-4-804(1)(b)(I)(A) 
 Connecticut 6.35% 9.35% for rentals of 30 consecutive days or less, plus a $1.00/per day surcharge* Connecticut Dept. of Revenue
 Delaware 1.9914% (excluding household furnishings and medical equipment) 1.9914% Del. Code Ann. tit. 30 §4302
 Florida 6% on taxable personal property 6% when rented for a period of 12 months or less plus $2.00/ per day surcharges* FL Stat § 212.05
 Georgia None None* N/A
 Hawaii 4% plus applicable county surcharges  $5.00/per day* Hawaii Dept. of Taxation;

Hawaii Rev. Stat.  §18-251-2

 Idaho 6% (excluding fully operated equipment rentals) None* Idaho State Tax Commission
 Illinois 6.25% 5%  

35 ILCS 155/3

 Indiana 7% (excluding certain motion picture rentals) 4%* IN Code § 6-2.5-4-10;

Indiana Dept. of Revenue

 Iowa 6% 5% plus local surcharges* Iowa Dept. of Revenue
 Kansas 6.5% plus any local taxes (see chart for all exempt property) 3.5%* Kansas Dept. of Revenue
 Kentucky 6% 6% “You Drive It” tax 103 KAR 28:051;

Kentucky Dept. of Revenue 

 Louisiana 4.45% 3%* Louisiana Dept. of Revenue
 Maine 5.5% unless exempt under ME Rev. Stat. § 1760 10% Maine Revenue Services
 Maryland 6% plus taxes levied on service charges (if any) 11.5%* MD Code Regs.;

Maryland Manual On-Line

 Massachusetts 6.25% None, but separate surcharges may apply* Massachusetts Dept. of Revenue;

MA Gen L ch 90 § 32e3/4

 Michigan 6% (payable through one of two methods) 6%* Michigan Dept. of Treasury
 Minnesota 6.875% plus applicable local taxes 9.2% tax and a 5% fee Minnesota Dept. of Revenue;

MN Stat § 297A-64

 Mississippi 7% with certain exemptions 6%* Mississippi State Tax Commission;

Mississippi Dept. of Revenue

 Missouri 4.225% (unless taxes were paid upfront in the original purchase of the rented property) 4%* 12 CSR 10-108.700

MO Rev Stat § 144.020

 Montana None 4% MT Code § 15-68-102
 Nebraska 5.5% plus applicable local taxes None NE Reg-1-018
 Nevada 4.6% plus applicable municipal taxes (payable through one of two methods) 10%* Nevada Dept. of Taxation;

NV Rev Stat § 482.313

 New Hampshire None 9% New Hampshire Dept. of Revenue Administration
 New Jersey 6.625%, but may vary depending on the duration of rental $4.00/per day* New Jersey Division of Taxation;

New Jersey Dept. of the Treasury

 New Mexico 5.125%-8.6875% depending on jurisdiction (see rates map) 5% plus $2.00/per day* New Mexico Dept. of Taxation and Revenue;

NM Stat § 7-14A-3

 New York 4% plus applicable local taxes 6%* (New York City levies an additional 5%) New York State Dept. of Taxation and Finance 
 North Carolina 4.75% plus local rates 8%* North Carolina Dept. of Revenue
 North Dakota 5% 3%* North Dakota Office of State Tax Commissioner;

ND Cent. Code § 57-39.2-03.7

 Ohio 5.75% unless an exemption applies None* Ohio Dept. of Taxation
 Oklahoma 4.5% plus any local taxes 6%* 68 O.S. § 1354;

68 OK Stat § 68-2110(A)

 Oregon None None N/A
 Pennsylvania 6% (excluding unprepared food, textbooks, computer services, and more) 2% plus $2.00/per day* Pennsylvania Dept. of Revenue;

§ 8602-A

 Rhode Island 7% 8%* Rhode Island Division of Taxation;

RI Gen L § 31-34.1-2(a) 

 South Carolina 6% 5%* South Carolina Dept. of Revenue
 South Dakota 4.5% unless an exemption applies 4.5%* plus a 1.5% tourism tax (if applicable) South Dakota Dept. of Revenue;

SD Codified L § 32-5B-20

 Tennessee 7% (unless the property is leased as a service with an operator or crew) 3%* Tennessee Dept. of Revenue
 Texas 6.25% 10% Texas Comptroller of Public Accounts
 Utah 4.85% plus local and county taxes 2.5%* Utah Dept. of Revenue;

UT Code § 59-12-1201

 Vermont 6% (agricultural equipment is exempt if used predominately for agricultural purposes) 9% Vermont Dept. of Taxes;

32 V.S.A § 8903

 Virginia 5.3% plus taxes levied on service charges 10% (comprised of 4% rental tax, 4% local tax, 2% rental fee) 23 VAC 10-210-840;

Virginia Dept. of Taxation

 Washington 6.5% (an additional B&O tax may apply at the rate of 0.484%) 5.9%* WAC 458-20-211;

Washington State Dept. of Revenue

Washington D.C. 6% 10.25* D.C. Office of the Chief Financial Officer
West Virginia 6% plus local taxes $1.00-$1.50/per day* WV Code §17A-3-4
 Wisconsin 5% 5%* WI Stat § 77.52;

Wisconsin Dept. of Revenue

 Wyoming 6% plus municipal taxes 4%* WY Stat § 39-15-103

Wyoming Dept. of Transportation

*Subject to additional state and local sales tax rates.