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Vehicle License Fees Deduction

March 06, 2018

Taxpayers who are eligible to itemize their deductions on form Schedule A may benefit from certain State and Local Personal Property Taxes paid in 2017. One of the common deductions includes the Vehicle License Fee paid to a state’s Department of Motor Vehicles. 

The Vehicle License Fee can generally be found on the DMV Vehicle Registration Renewal Notice.  Keep in mind the Vehicle License Fee is only a portion of the total fee paid, so it is important to keep records of the renewal notice come tax time rather than referencing a voided check or credit card statement for the total renewal fee paid.

The California DMV has made the process even easier by creating a “Vehicle Registration Fee Calculator” on their website.  California residents can now input their Vehicle License Plate Number and the last five digits of the Vehicle Identification Number (VIN) to calculate the estimated Vehicle License Fee paid for the year.  To access the calculator you can visit the website at:  https://www.dmv.ca.gov/wasapp/FeeCalculatorWeb/vlfFees.do.