Is my car registration fee deductible?

Modified on Sun, 05 Feb 2023 at 08:27 PM

You may be able to deduct a portion of your car’s registration fee from your tax return, in certain situations. In order to do so, you’ll need to itemize your tax return, which may not make financial sense if you do not have other expenses to itemize. For many, opting for the standard deduction and not deducting their car registration fee will make more sense.

If you are itemizing your taxes, however, you should know when you can deduct your car registration fee. While you can’t deduct the entire amount, you can deduct the amount you're charged based on the vehicle’s value.

This can be tricky to find, depending on what state you live in. Some states may clearly mark out how much you paid based on the value of your vehicle, while others may not. In this case, you may need to do some math, first figuring out the calculation your state uses to charge a fee, and then identifying the amount you paid based on your vehicle’s value.

To deduct the eligible portion of your car registration fee, you’ll fill out Schedule A. Your registration fees will go on the “state and local personal property tax” line when itemizing your deductions.

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