Deductions & credits

The sales tax paid on a car can be deducted if the following is true:

1. You itemize deductions rather than taking the standard deduction.

2. You take the sales tax deduction rather than the state income tax deduction (if your state has an income tax)

You can enter the sales tax paid on the car as a major purchase when entering the sales tax. It is added to the general sales tax table amount.

The registration fee in some states is partially deductible on the federal tax return if it is based on the value of the car. 

Some states also have personal property taxes on a car which are deductible on the federal return.