You are purchasing the item(s) from Progressive, and local sales tax is added to your recurring lease-to-own payments.
Your estimated sales tax rate is based the address you provided on your lease-to-own application and the laws associated with that area. Your estimated sales tax rate may change at any time during your lease-to-own agreement depending on the area in which you reside.
Estimated sales tax will be included in your initial payment and every payment thereafter. Another way to think about this is the full estimated sales tax is not collected up front, but rather paid as you go.