tax on vehicle lease deductible

If you don't use the vehicle for self-employment business use, then the sales tax could be deductible as an itemized deduction. However, you would have to choose to deduct sales taxes as opposed to state income taxes for the itemize deduction. You can choose which method gives you the bigger deduction, sales taxes or state income taxes, but the total of your state taxes cannot exceed $10,000 in 2024 on your federal tax return. Also, you would have to benefit from itemizing your deductions as opposed to taking the standard deduction for the sales tax deduction to be beneficial.

You will see an option for entering your state sales tax in the Deductions and Credits section of TurboTax, then Estimates and Other Taxes Paid, then Sales Tax.

If you use the vehicle for self-employed business use, you can deduct the sales tax as a business auto expense, subject to limits based on the value of the vehicle and the miles driven for business versus personal use.