Can I report taxes paid on a new car if the car is not paid off

willow2466 — Sat, 07 Feb 2026 00:50:19 GMT

Re: Can I report taxes paid on a new car if the car is not paid off

xmasbaby0 — Sat, 07 Feb 2026 00:54:08 GMT

If you purchased a new car in 2025, you can enter the sales tax that you paid. The car does not have to be "paid off." You may also be able to enter the interest paid on the car loan.

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2025 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. Unless you have enough other itemized deductions to exceed your standard deduction the sales tax will have no effect on your tax due or refund.

“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

CAR LOAN INTEREST

Go to Federal>Deductions and Credits>Cars and Other Things You Own>Car Loan Interest

The amount will go on Schedule 1a and end up on Form 1040 on line 13b

Re: Can I report taxes paid on a new car if the car is not paid off

DawnC — Sat, 07 Feb 2026 00:55:10 GMT

What kind of taxes? You can deduct sales tax in the year you purchased it if you itemize and you might be able to claim the property tax (registration fees) if you itemize.

If you qualify to take the auto loan interest deduction, you can take the deduction whether or not the car is paid off. What is the vehicle loan interest deduction?

topic Can I report taxes paid on a new car if the car is not paid off in Deductions & credits

Can I report taxes paid on a new car if the car is not paid off

Re: Can I report taxes paid on a new car if the car is not paid off

Re: Can I report taxes paid on a new car if the car is not paid off