Does an annual Car Tag Renewal Fee count as a car registration fee?

The portion of the registration fee that is charged based on the vehicle's value - as opposed to its size, age, or other characteristics - can generally be claimed as a deduction.

Every state has its own way of calculating the registration fee on a vehicle, and those calculations typically take several factors into account. For example, say your annual car registration fee is based on a formula that charges:

• $2 per 100 pounds of vehicle weight,
• $1 per $1,000 of value,
• a flat $10 for license plate tabs, and
• $35 in other taxes and charges.

If you had a 4,200-pound vehicle with a value estimated by the state at $25,000, then your fee would be $154.

• (4,200-pound vehicle weight ÷ 100) x $2 = $84
• ($25,000 vehicle value ÷ $1,000) x $1 = $25
• $84 weight fee + $25 value fee + $10 license plate tabs + $35 taxes and charges = $154 total fee

Of that $154, only $25 would be an itemized deduction, because that's the only portion based on the actual value of the vehicle.