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Level 2
February 23, 2026
Question

Are City and State VUT taxes deductible?

  • February 23, 2026
  • 1 reply
  • 48 views

Hello,

 

In 2025 I bought a used van from out of state. In registering it, in addition to the Vehicle License Tax, I had to pay $413.40 in City VUT and $890.40 in State VUT. (Vehicle Use Tax). Aren't these amounts deductible? If so, I can't find where to deduct them in TT Home and Business. 

 

Thank you for your assistance.

 

Yvonne Ochse

1 reply

DawnC
Level 15
February 24, 2026

They can be deductible.   Use taxes are treated as sales taxes, so they are deductible if you itemize and choose the sales tax deduction instead of the state and local tax (SALT) deduction.   If you're itemizing, you get to choose between deducting your state and local income taxes or your state and local sales taxes.   You can't claim both, and you can't claim either one if you're taking the Standard Deduction.   Where do I enter my sales taxes paid?

 

Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2025 if the tax rate was the same as the general sales tax rate.  See Schedule A instructions

 

You can find the entry in the Deductions & Credits section >> Estimates and Other Taxes Paid >> Sales Tax

 

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