Yes, you can deduct the use tax as a part of your sales tax. Instead of collecting state sales tax, North Carolina collects a Highway use Tax (HUT) on vehicles. The tax is assessed each time a title is transferred.
Please refer to the North Carolina Division of Motor Vehicles for more details.
You will enter your expenses in the Sales Tax section.
1. Select Federal Taxes.
2. Select Deductions and Credits.
3. Select "I'll choose what I work on".
4. Scroll down to "Estimates and Other Taxes Paid"
5. Select "Sales Tax".
