Is Arizona's new highway tax deductible?

[kenewells]

Arizona collects a highway tax of $35.00 per vehicle on top of registration fees when you register your vehicle.  The tax is new this year.  Is it deductible on federal form?

[MichaelMc · Accepted solution]

Generally, car registration fees may be deductible on your federal income taxes, but only under certain circumstances. The portion of the annual registration fee that is charged based on the vehicle's value - as opposed to its size, age, or other characteristics - can generally be claimed as a deduction. If part of your registration is indeed deductible, you must itemize your deductions to claim it, rather than using the standard deduction.

As the Arizona "public safety fee" that you ask about is a flat fee, rather than value-based, it would not be tax deductible for federal income tax purposes.