Are Car Registration Fees Tax-Deductible?

Mileage tracking made easy

Trusted by millions of drivers

Automate your logbook Automate your logbook

Claim your deductions

Reclaim your time

Automatic mileage tracking and IRS-compliant reporting.

Get started for free Get started for free

How to deduct vehicle registration fees on your tax return

To deduct vehicle registration fees on your federal tax return, you need to use the IRS Form 1040, Schedule A, and write down your deductible claim in line for “State and local personal property taxes.”

Remember that you can only deduct fees calculated based on the vehicle’s value. If the fee is a flat rate or based on other criteria (age, weight, type of vehicle), you won’t be able to deduct it.

Example calculation

Let’s see how much you could actually deduct based on an example formula below.

Let’s say the annual vehicle registration fee on your car is made up of the following amounts:

$1 per 100 pounds of vehicle weight,
$1 per $1,000 of value
A flat $15 free for license plate tabs
$20 in other miscellaneous taxes and charges.

If we calculated the deduction for a vehicle that weighed 3,500 pounds and had a value of $35,000 as estimated by the state, this is how you’d calculate your registration fee:

(3,500lbs weight ÷ 100) x $1 = $35
($35,000 in vehicle value ÷ $1,000) x $1 = $35

$35 weight fee + $35 value fee + $15 license plate tabs + $20 taxes and charges = $105 total car registration fee

Deductible portion of the fee: $35 (value-based portion)

What states can you deduct vehicle registration fees in?

Note that not all states have value-based vehicle registration fees. If none of your vehicle registration fees are based on the car’s value, you won’t be able to deduct them.

Here’s a list of all states that have value-based car registration fees, along with the specific fees that fall into this category. We’ve also indicated which states don’t allow the car registration fee deduction at all.

State	Deductible/non-deductible registration fees and the portion you can claim a deduction on
Alabama	Ad Valorem Tax (Personal Property Tax)
Alaska	Not deductible
Arizona	Vehicle License Tax (VLT)
Arkansas	Not deductible. However, you can deduct the value-based Ad Valorem Tax paid to your county.
California	Vehicle License Fee (VLF)
Colorado	Ownership Tax
Connecticut	Not deductible. However, you can deduct the value-based Property Tax paid to your city or county.
Delaware	Not deductible
Florida	Not deductible
Georgia	The Annual Ad Valorem Tax. This applies to most cars purchased before March 1, 2013, as well as non-titled vehicles. You cannot deduct the Title Ad Valorem Tax (TAVT).
Hawaii	Not deductible
Idaho	Not deductible
Illinois	Not deductible
Indiana	Excise Tax Fees
Iowa	Value-based portion of your Vehicle Registration Fee
Kansas	Not deductible. However, you can deduct the value-based personal Property Tax paid to your county.
Kentucky	Value-based portion of your Vehicle Registration Fee
Louisiana	Value-based portion of the License Plate Fee
Maine	Not deductible. However, you can deduct the value-based excise taxes paid to your city or county.
Maryland	Not deductible
Massachusetts	Motor Vehicle Excise Tax
Michigan	The License Fee paid based on the vehicle’s value (for models from 1984 or newer).
Minnesota	Registration Tax
Mississippi	Ad valorem Tax
Missouri	The Personal Property Tax portion of the vehicle registration fees.
Montana	County Option Tax
Nebraska	Motor Vehicle Tax
Nevada	Motor Vehicle Tax
New Hampshire	The Municipal Fees part of your vehicle registration fees.
New Jersey	Not deductible
New Mexico	Not deductible
New York	Not deductible
North Carolina	Vehicle Property Tax
North Dakota	Not deductible
Ohio	Not deductible
Oklahoma	Not deductible
Oregon	Not deductible
Pennsylvania	Not deductible
Rhode Island	Not deductible. However, you can deduct the value-based excise tax paid to your city or town.
South Carolina	Value-based Personal Property Tax
South Dakota	Not deductible
Tennessee	Not deductible
Texas	Not deductible
Utah	Not deductible
Vermont	Not deductible
Virginia	Not deductible. However, you can deduct the value-based Personal Property Tax paid to your city or town.
Washington	Regional Transit Authority (RTA) tax if required by your county.
West Virginia	Not deductible. However, you can deduct the value-based personal property tax paid to your county.
Wisconsin	Not deductible
Wyoming	Value-based portion of your Vehicle Registration Fee