Contributed by: PhillipB TaxPro FreeTaxUSA Team
Personal property tax on any of your vehicles is deductible if the tax is based on the value only, and the tax is imposed on a yearly basis.
In some cases, the state may collect personal property tax with your motor vehicle registration fee, so you may need to determine what portion of the tax in the registration fee is deductible.
In other cases, some states collect this tax separately from the motor vehicle registration fee.
States with personal property tax not included with the motor vehicle registration fee include:
- Arkansas – Ad Valorem Tax on the vehicle’s value that is paid to the county.
- Connecticut – Property Tax paid to the city or county based on value of the vehicle.
- Kansas – Personal Property Tax Paid to the county based on the vehicle value.
- Maine – Excise Tax paid to the county or city based on the vehicle value.
- Rhode Island – Excise Tax paid to towns or cities based on vehicle value.
- Virginia – Personal Property Tax paid to city or town based on vehicle value.
- West Virginia – Personal Property Tax paid to a county based on a vehicle value.
States with deductible property tax with their motor vehicle registration fee (listed by state with the deductible portion) include:
- Alabama – Ad Valorem Tax
- Arizona – Vehicle License Tax
- California – Vehicle License Tax
- Colorado – Ownership Tax
- Georgia – Ad Valorem Tax
- Indiana – Excise Tax Fees
- Iowa – portion of Vehicle Registration Fee based on the vehicle's value.
- Kentucky - portion of Vehicle Registration Fee based on the vehicle's value.
- Louisiana – License Plate Fee based on the vehicle's value.
- Massachusetts – Motor Vehicle Excise Tax
- Michigan – License Fee on 1984 vehicles and newer (vehicles older than 1984 have a license fee based on weight)
- Minnesota – Registration Tax
- Mississippi – Ad Valorem Tax
- Missouri – Personal Property Tax on the vehicle which is paid to the county.
- Montana – County Option Tax
- Nebraska – Motor Vehicle Tax
- Nevada – Motor Vehicle Tax
- New Hampshire – Municipal Fees portion of the vehicle registration fees.
- North Carolina – Vehicle Property Tax paid to the county
- South Carolina – Personal Property Tax
- Washington – Regional Transit Authority Tax if required by your county
- Wyoming – Vehicle Registration Fees paid to the county that are based on vehicle value
