El Paso MINI Tax Season Car Sales

Is Financing a New Vehicle Tax Deductible on State Taxes?

Yes. You may certainly deduct the tax whether charged on a new or used vehicle. Generally speaking, one can only make a tax deduction that is equal to what you paid when you purchased the car by adding it to the Sales Tax Table for the appropriate state, and the car registration fees paid, if your state bases the fee on the value of your car. Those expenses are deductible only if you itemize. In the case of sales tax, it must be higher than the state income tax that you paid.