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You can deduct taxes you paid on the value of personal property. To deduct your personal property tax:
- You have to itemize your deductions to deduct personal property taxes.
- You can only deduct personal property taxes you paid on property that you own.
- You cannot deduct penalties or late payment fees that appeared on your tax bill.
To enter the property tax into TurboTax:
- Go to Federal Taxes, then Deductions & Credits
- Find Cars and Other Things You Own - Start Personal Property Taxes
- TurboTax asks: 'Did you pay a personal property tax bill?' Answer yes
If you paid registration fees to a state that charges tax based on the vehicle's value, you can claim the deductible value-based (sometimes, ad valorem) portion of your registration fee. You must itemize your deductions using federal Schedule A. There is no way to claim this amount on the state interview.
To add deductible car registration fees into TurboTax:
- Go to Federal Taxes, then Deductions & Credits
- Find Cars and Other Things You Own - Start/Edit Car Registration Fees
Below is a list of states that charge a tax based on the vehicle’s value:
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Georgia
- Iowa
- Indiana
- Kentucky
- Louisiana
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- South Carolina
- Washington
- Wyoming
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