What Personal Property Taxes (such as car registration fees) qualify for deduction?


What Personal Property Taxes (such as car registration fees) qualify for deduction?

Personal Perty Taxes Paid

Personal property taxes are itemized deduction that reduce your tax liability (amount you owe). You enter it on the Schedule A under taxes you paid when you choose to itemize your deductions.

Criteria for Personal Property Taxes

  • Deductible personal property taxes are those based only on the value of personal property such as a boat or car.
  • The tax must be charged to you on a yearly basis, even if it is collected more than once a year or less than once a year.

Example of Personal Property Taxes

If you pay a yearly fee for registration of your car or baot, part of that fee is for the tag and part of that fee is for ad valorem tax.  Depending on your state, the fees may even be based on other factors such as the weight of the vehicle.  Only the ad valorem tax that was paid may be deducted because it is the part of the fee that is based on the value of your vehicle.

Reminder about Person Property Taxes

If you did pay any qualifying personal property taxes during the tax year that was based on the value of that property, you can itemize these as a deduction by entering these on your Schedule A form under Taxes You Paid. Most common is the portion of your car or boat DMV registration or tags fees paid annually that is based on the value of the vehicle, car, truck, van, boat, trailor, or what ever it is.

Other Tax Information


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