Level 2

Auto License

Forum|Forum|1 year ago
July 8, 2025
2 replies
16 views

I am not sure where to put license plate registration cost when on Schedule A when itemizing for a client?

Level 15

Maybe nowhere.

You can only include the tax (fee) based on the vehicle's value. Different states treat the registration differently, so you'll need to know if (and how much) of the registration fee is deductible.

*IF* it is deductible, see line 5c.

https://www.irs.gov/instructions/i1040sca#en_US_2024_publink53061xd0e821

BobKamman

Level 15

Here is a list of states where this deduction is possible, categorized by whether the property tax is collected with registration or separately:

States where deductible property tax is included with vehicle registration: Alabama, Arizona, California, Colorado, Georgia, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, South Carolina, Washington, and Wyoming.
States where deductible property tax is paid separately from vehicle registration: Arkansas, Connecticut, Kansas, Maine, Rhode Island, Virginia, and West Virginia.

Important Note: The ability to deduct vehicle registration fees as personal property tax is contingent on whether the fee, or a portion of it, is based on the vehicle's value. Well, actually that's not true. In Arizona it's assumed that the vehicle value drops 16.25% every year, and the tax is based on that artificial number. A car can go up in value -- for example, if it is a collectible, or if it has been reconditioned -- and it doesn't matter. I'm sure other states use the same "appraisal" system.

Sign up

Login with SSO

Let's get you signed in

Login with SSO