What is the deductible portion of a vehicle registration fee for Texas?
None of the registraton fees in TX are deductible. TX does not levy an ad-valorem property tax on motor vehicles. However the State Sales Tax that you paid on the vehicle is deductible if you itemize. You can either deduct State Income Tax or State Sales Tax if you itemize. Since TX does not have an income tax, you’d take the table amount from the Schedule A instructions and add the sales tax from the vehicle purchase to that for your total Sales Tax deduction. If you can prove that you paid more than the table amount in the instructions then you may deduct what you actually paid. The TX New Resident Fee is NOT a sales tax so it is not deductible.
