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Deductions & credits
If you purchase a new car, you can deduct the sales tax if you're itemizing your deductions. You get to choose between deducting your state and local income taxes or your state and local sales taxes.
Where do I enter the sales tax on my car?
For car registration fees:
When you itemize your deduction, you can deduct only the portion of the fee that’s based on your vehicle’s value.
However, not all states have value-based registration fees. Refer to the following link for information related to your specific situation:
Is my car registration fee deductible?
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February 16, 2023
6:24 AM