There are also charges for Dealer's business license tax and registration fee.
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Most of those taxes or fees are not deductible on a personal tax return as itemized deductions. You may be able to deduct a portion of the registration fee if a portion is based on the value of the car. That is only true in some states. To find where to enter it and see if your state registration fee is eligible, type car registration fee in the search box and click on jump to car registration fee. On the first screen that appears, click on the blue Learn more line.
You can deduct the sales tax paid on a car as a major purchase in addition to the sales tax table amount. This could be beneficial if your state has no income taxes or if the total of all your sales taxes including the sales tax on the car purchase is more than the state income taxes.
Most of those taxes or fees are not deductible on a personal tax return as itemized deductions. You may be able to deduct a portion of the registration fee if a portion is based on the value of the car. That is only true in some states. To find where to enter it and see if your state registration fee is eligible, type car registration fee in the search box and click on jump to car registration fee. On the first screen that appears, click on the blue Learn more line.
You can deduct the sales tax paid on a car as a major purchase in addition to the sales tax table amount. This could be beneficial if your state has no income taxes or if the total of all your sales taxes including the sales tax on the car purchase is more than the state income taxes.
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