In 2024, I leased a new vehicle for personal use in Maryland and paid:
- 6% 'Title tax' against the price of the vehicle
- Registration fee
- Temporary tag fee
The state MVA website reads:
You may be able to take an itemized deduction on Schedule A for any tax related portion of the registration fee. To be deductible, the tax portion must be based on the value of the vehicle and be charged on a yearly basis.
Registration, administrative, or emission testing fees, or tag or plate fees are not deductible for federal purposes. Often, your registration form will show separate lines for each item, be sure you deduct only the portion listed as for a vehicle tax. You may be able to deduct the other fees on your state return.
Based on the above, may I deduct 'Title tax', registration fee or temp tag fee for state tax filing? I was not sure what it meant by 'any tax related portion...' Can the 'Title tax' be considered the personal property tax for my leased vehicle?
Thanks in advance.
