Is new car Title Tax in Virginia tax deductible?

[rajeevrr68]

I bought a new car from the dealer in 2018. Is the Title Tax deductible in my Tax returns ? Can I add this amount to car property tax that I claim in itemized deductions?

[JohnW15 · Accepted solution]

Yes, this is deductible.   

According to the Virginia DMV's page Motor Vehicle Sales and Use Tax, the state's title transfer tax is 4.15%, and is based on either the vehicle's gross sales price or $75, whichever is greater.

Because this fee is based on the value of the vehicle, and not on some other factor, you're able to deduct it when you're itemizing.