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Is my car registration fee deductible?

by TurboTax Updated 5 months ago

Yes, 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 list for information related to your specific situation:

 Alabama The Ad Valorem Tax you paid on your vehicles.
 Arizona The Vehicle License Tax (VLT) you paid on your vehicles.
 California The Vehicle License Fee (VLF) portion of your registration fee.
 Colorado The Ownership Tax you paid on your vehicles.
 Georgia The Ad Valorem Tax you paid on your vehicles, only for vehicles purchased before March 1, 2013, and non-titled vehicles.
 Indiana The Excise Tax Fees you paid on your vehicles.
 Iowa The Vehicle Registration Fee you paid based on your vehicle's value.
 Kentucky The Vehicle Registration Fee you paid based on your vehicle's value.
 Louisiana The License Plate Fee you paid based on your vehicle’s value.
 Massachusetts The Motor Vehicle Excise Tax you paid on your vehicles.
 Michigan The License Fee you paid based on your vehicle's value, if the model year is 1984 and newer.
 Minnesota The Registration Tax you paid on your vehicles.
 Mississippi The Ad Valorem Tax you paid on your vehicles.
 Missouri The Personal Property Tax portion of your vehicle registration fees paid to your county.
 Montana The County Option Tax you paid on your vehicles.
 Nebraska The Motor Vehicle Tax portion of your registration fees.
 Nevada The Motor Vehicle Tax you paid on your vehicles.
 New Hampshire The Municipal Fees portion of your vehicle registration fees.
 North Carolina The Vehicle Property Tax you paid to your county on your vehicles.
 South Carolina The Personal Property Tax paid to your county based on your vehicle’s value.
 Washington The Regional Transit Authority (RTA) Tax you paid on your vehicles, if required by your county.
 Wyoming The Vehicle Registration Fees paid to your county based on your vehicle's value.

Although auto registration fees aren’t deductible in the following states, you're allowed to claim the personal property tax you paid annually based on the value of your car. Follow this link to learn more about the Personal Property Tax Deduction.

 Arkansas The Ad Valorem Tax paid to your county based on your vehicle’s value.
 Connecticut The Property Tax you paid to your city or county based on your vehicle's value.
 Kansas The Personal Property Tax you paid to your county based on your vehicle's value.
 Maine The Excise Taxes you paid to your city or county based on your vehicle's value.
 Rhode Island The Excise Tax paid to your city or town based on your vehicle’s value.
 Virginia The Personal Property Tax paid to your city or town based on your vehicle’s value.
 West Virginia The Personal Property Tax paid to your county based on your vehicle’s value.

Here are some places to check:

  • Current vehicle registration or license bill.
  • Vehicle registration card.
  • Purchase contract if you recently bought the car.
  • State DMV website for an online copy of your bill.

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