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Do I include taxes paid on a new vehicle when entering car registration fees?

 
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DawnC
Employee Tax Expert

Do I include taxes paid on a new vehicle when entering car registration fees?

No.  You only enter the deductible portion of your registration fee in that section.  Your car registration fee is deductible if it’s a yearly fee based on the value of your vehicle, and you itemize your deductions.   You can’t deduct the total amount you paid, only the portion of the fee that’s based on your vehicle’s value.

 

In addition, not all states have value-based registration fees. Refer to the following link for information related to your specific situation:   Car Registration Feeds deductibility

 

If you're itemizing, you get to choose between deducting your state and local income taxes or your state and local sales taxes.   You can't claim both, and you can't claim either one if you're taking the Standard Deduction.

 

If you go with the sales tax deduction, you can claim the sales taxes you paid on just about anything you bought, whether it was purchased online or locally, in-state or out-of-state, big or small.   

 

Where do I enter the sales tax on a car I purchased last year?

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