topic Can I claim taxes paid on purchase of car this yearand how do I do that ? in Deductions & credits

Can I claim taxes paid on purchase of car this yearand how do I do that ?

schaeferkaren — Tue, 10 Feb 2026 09:57:22 GMT

$1535 in state, city, RTD and County taxes.

Re: Can I claim taxes paid on purchase of car this yearand how do I do that ?

xmasbaby0 — Wed, 17 Jan 2024 16:01:34 GMT

You can enter sales tax as an itemized deduction. Unless you have enough other itemized deductions like mortgage interest to enter, the sales tax on a car will make no difference at all.

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2023 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

Sales tax is an itemized deduction. “Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts) The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income. It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2023 Form 1040.

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850 (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $13,850 (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700 (65+/legally blind) ) + $1500 per spouse

HEAD OF HOUSEHOLD $20,800 (65 or older/blind) + $1850)

Re: Can I claim taxes paid on purchase of car this yearand how do I do that ?

Opus 17 — Wed, 17 Jan 2024 16:09:38 GMT

If you itemize your deductions, and if you live in a state with no income tax (or your sales tax is higher than your income tax), you might benefit from deducting sales tax on the purchase of the car. Enter the expense in Turbotax and the program will tell you what gives you the lowest income tax.

For the sales tax deduction, you can either deduct the actual amount of sales tax you paid for the whole year that you can prove with reliable records, or you can use a "standard" amount provided by the IRS based on your local tax rates and your income. If you use the standard method, you can add sales tax you paid for purchase of a motor vehicle.

However, you can only deduct general sales tax that is charged at the same rate on every other purchase in your area. For example, if the general sales tax rate is 4% for the state and 3% for your county, that's what you can deduct on the purchase of the car. You can't deduct most other taxes and fees, such as a registration fee, road tax, etc.

Separately, if you are charged a personal property tax (value tax, ad valorem tax) based on the value of the vehicle, that is also deductible, but not in the sales tax section, it is in the personal property taxes section. But again, only the part that is based on value. For example, in my county, I was charged $350 last year on the value of my used car, $330 based on the value and a fixed $20 fee. The deductible amount is $330, not $350.

Re: Can I claim taxes paid on purchase of car this yearand how do I do that ?

Hal_Al — Wed, 17 Jan 2024 16:38:10 GMT

Q. Can I claim taxes paid on purchase of car this year and how do I do that ?

A. Simple answer: No. More accurately; you can, but it's unlikely you'll see any benefit.

If you haven't itemized deductions in the past (you use the standard deduction), $1535 more deduction is unlikely to change that. As others have said, sales tax is not an additional deduction, it is only an alternative to deducting state/local income and property taxes. So the "additional deduction is (most likely) going to be less than the full $1535.

Re: Can I claim taxes paid on purchase of car this yearand how do I do that ?

DaveF1006 — Wed, 17 Jan 2024 16:23:26 GMT

Yes, you may claim sales taxes for the purchase of your vehicle. To report:

Log into Turbo tax
Go to deductions and credits>estimates and other taxes paid
Sales tax
Select the easy guide
When you arrive there, the first screen will have you pick a location and then enter the sales tax rate in your area.
Once you record the information., select done.
Next screen will ask if you made any major purchases. Here you enter the sales tax information for the car that includes the cost, sales tax paid, and the sales tax paid.

Just an FYI, if you itemize deductions, you may either deduct the state and local general sales tax you paid during the year, or you can deduct the state and local income tax you paid during the year. You can't do both. The federal cap for this deduction is $10,000.

Also, your tax payments may be below the standard deduction amount that xmasbaby0 mentions above. I mention this because if your itemized deductions do not exceed the standard deduction, then Turbo Tax will choose the deduction that is right for you. I have seen many questions 'asked why hadn't your tax return changed after entering your sales tax information. This is why.

@schaeferkaren