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Can I deduct an excise tax?

Updated: 3/30/2013

Article ID: GEN85303

Generally, excise taxes are not deductible. However, state and local taxes imposed on personal property are deductible if three conditions are met: the tax must be--

based on the value of the property,
imposed on an annual basis, and
imposed on personal property (a car is considered personal property).

Payment for car registration and licensing or a motor vehicle tax may be deductible as a personal property tax if it is imposed annually and assessed in proportion to the value of the car.

Personal Property Taxes and TurboTax

If you determine that your excise tax qualifies as a personal property tax, and want to jump directly to the entry screen for personal property taxes, follow these directions.

Select the Federal Taxes tab (the Personal tab in the Home & Business edition).
Select the Deductions & Credits subtab, click on Explore on My Own.
Scroll down the Deductions & Credits screen until you see the Your Home group.
Click on the Start/Update button to the right of the Property Taxes category.
Follow the prompts.

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