Personal Property Tax, Title Fee and Temp Tag Fee for a 2024 leased vehicle in Maryland

[sonicpoem]

In 2024, I leased a new vehicle for personal use in Maryland and paid:

• 6% 'Title tax' against the price of the vehicle  
• Registration fee
• Temporary tag fee

The state MVA website reads:

You may be able to take an itemized deduction on Schedule A for any tax related portion of the registration fee. To be deductible, the tax portion must be based on the value of the vehicle and be charged on a yearly basis.

Registration, administrative, or emission testing fees, or tag or plate fees are not deductible for federal purposes. Often, your registration form will show separate lines for each item, be sure you deduct only the portion listed as for a vehicle tax. You may be able to deduct the other fees on your state return.

Based on the above, may I deduct 'Title tax', registration fee or temp tag fee for state tax filing?  I was not sure what it meant by 'any tax related portion...'  Can the 'Title tax' be considered the personal property tax for my leased vehicle?  

Thanks in advance.

[DianeW777]

No, the title fee is not considered personal property tax. The personal property tax is a yearly fee based on the value of the vehicle and is paid by the owner or the person who is leasing the vehicle.  The person leasing the vehicle may pay it to the leasing company or directly to the city depending on the terms of the lease. This tax is a deduction if you can itemize your deductions on Schedule A, and then utilized on the Maryland (MD) return.

[sonicpoem]

Thank you so much for the prompt response on 'Title tax'.  But, what about 'registration fee or temp tag fee for state tax filing'?  We pay vehicle registration fee every other year in Maryland.

[JohnW152]

No, these Maryland fees aren't deductible. 

See the TurboTax Help article Is my car registration fee deductible? for more information.

@sonicpoem 

[sonicpoem]

Thank you!