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February 21, 2025
Question

Is Excise tax on a car deductible and where do you put it in the taxes?

  • February 21, 2025
  • 1 reply
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What about in the state of South Dakota?

    1 reply

    February 21, 2025

    SALES tax is an itemized deduction you can use if you purchased a car.

     

    SALES TAX

    You can enter the sales tax you paid for the car you purchased in 2024 by going to

    Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. 

    You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

     

    Sales tax is an itemized deduction.  Unless you have enough other itemized deductions to exceed your standard deduction the sales tax will have no effect on your tax due or refund.

     

    “Major purchases” that you can enter for the sales tax deduction include:

    Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

    Aircraft or boats

    Mobile homes

    Manufactured housing

    Building materials for major home improvements

    You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

     

    States with no sales tax:  Alaska, Delaware, Montana, New Hampshire and Oregon

     

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**