Is my car registration fee deductible? - Community

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Is my car registration fee deductible?

Yes, if it’s a yearly fee based on the value of your vehicle and you itemize your deductions.

You can’t deduct the total amount you paid, only the portion of the fee that’s based on your vehicle’s value.

And, not all states have value-based registration fees. The states that do are list below along with the deductible portion of your registration fee.

 Alabama  The Ad Valorem Tax you paid on your vehicles
 Arizona  The Vehicle License Tax (VLT) you paid on your vehicles
 California  The Vehicle License Fee (VLF) portion of your registration fee
 Colorado  The Ownership Tax you paid on your vehicles
 Indiana  The Excise Tax Fees you paid on your vehicles
 Iowa  The Vehicle Registration Fee you paid based on your vehicle's value
 Kentucky  The Vehicle Registration Fee you paid based on your vehicle's value
 Louisiana  The License Plate Fee you paid based on your vehicle’s value
 Massachusetts  The Motor Vehicle Excise Tax you paid on your vehicles
 Michigan  The License Fee you paid based on your vehicle's value, if the model year is 1984 and newer
 Minnesota  The Registration Tax you paid on your vehicles
 Mississippi  The Ad Valorem Tax you paid on your vehicles
 Missouri  The Personal Property Tax portion of your vehicle registration fees paid to your county
 Montana  The County Option Tax you paid on your vehicles
 Nebraska  The Motor Vehicle Tax portion of your registration fees
 Nevada  The Motor Vehicle Tax you paid on your vehicles
 New Hampshire  The Municipal Fees portion of your vehicle registration fees
 North Carolina  The Vehicle Property Tax you paid to your county on your vehicles
 South Carolina  The Personal Property Tax paid to your county based on your vehicle’s value
 Washington  The Regional Transit Authority (RTA) Tax you paid on your vehicles, if required by your county
 Wyoming  The Vehicle Registration Fees paid to your county based on your vehicle's value

Although auto registration fees aren’t deductible in the following states, you're allowed to claim the personal property tax you paid annually based on the value of your car. Follow this link to learn more about the Personal Property Tax Deduction.

 Arkansas  The Ad Valorem Tax paid to your county based on your vehicle’s value
 Connecticut  The Property Tax you paid to your city or county based on your vehicle's value
 Kansas  The Personal Property Tax you paid to your county based on your vehicle's value
 Maine  The Excise Taxes you paid to your city or county based on your vehicle's value
 Rhode Island  The Excise Tax paid to your city or town based on your vehicle’s value
 Virginia  The Personal Property Tax paid to your city or town based on your vehicle’s value
 West Virginia  The Personal Property Tax paid to your county based on your vehicle’s value

Here are some places to check:

  • Current vehicle registration or license bill
  • Vehicle registration card
  • Purchase contract if you recently bought the car
  • State DMV website for an online copy of your bill

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