BobKamman
Level 15
‎07-07-2025 11:29 PM
Here is a list of states where this deduction is possible, categorized by whether the property tax is collected with registration or separately:
  • States where deductible property tax is included with vehicle registration: Alabama, Arizona, California, Colorado, Georgia, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, South Carolina, Washington, and Wyoming.
  • States where deductible property tax is paid separately from vehicle registration: Arkansas, Connecticut, Kansas, Maine, Rhode Island, Virginia, and West Virginia.
Important Note: The ability to deduct vehicle registration fees as personal property tax is contingent on whether the fee, or a portion of it, is based on the vehicle's value. Well, actually that's not true.  In Arizona it's assumed that the vehicle value drops 16.25% every year, and the tax is based on that artificial number.  A car can go up in value -- for example, if it is a collectible, or if it has been reconditioned -- and it doesn't matter.  I'm sure other states use the same "appraisal" system.  
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