BillM223
Expert Alumni

Deductions & credits

You can deduct any ad valorem tax, that is a tax based on the value of the vehicle.

 

The sales tax is obviously such a tax, but whether or not the annual registration and other fees are ad valorem taxes varies wildly form state to state. Registration fees are not always (or even often) based on the value of the car.

 

Your state's comptroller office will know.

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