Is Car Registration charges paid for an old vehicle in New York eligible for deduction ?

[TomK2023]

No, New York's registration fees are based on the vehicle's weight, which makes them not eligible for the federal personal property tax deduction.

To be deductible on Schedule A (Line 5c), the IRS requires a vehicle fee to meet three strict criteria:

1. It must be based solely on the value of the property.
2. It must be charged on a yearly basis.
3. It must be a tax on personal property, not a fee for a service.

New York DMV registration fees are calculated by weight class. Since it is not charged based on your vehicle's value, it is considered a "user fee" rather than a "personal property tax."

However, if you use your vehicle for business (such as: freelancing, Uber, DoorDash, consulting), you can deduct the registration fees as a business expense.  The "value-based" rule doesn't apply in this case; so you can deduct the actual cost proportional to your business mileage.

[NYSTATERESIDENT]

If annual car registration fees in NY are not tax deductible (see below), then why when I enter an amount in the car registration fees (for recent year autos)  Federal section, both my Federal and state tax refunds increased??? Appears TurboTax is considering them as tax deductible.

[DawnC]

You should only enter the deductible portion of your registration fees.   Each state has different rules and regulations regarding vehicle registration fees.  The field on the car regitration fees screen is only for the deductible portion, if any.    So, whatever you enter there will treated as deductible if you itemize.   Is my car registration fee deductible?

• If your vehicle is registered in a state that isn't listed, then your fees aren't deductible.  Do not enter them.
• If you live in a state that doesn't tax the value of your car, but you paid car registration fees in a state that does, you may be able to get this deduction.
• To find out more about your state’s vehicle registration deduction, contact your state’s Department of Motor Vehicles.