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Can I claim a deduction for personal property taxes when itemizing deductions?

When itemizing your deductions you’re allowed to deduct state or local personal property taxes, also known as ad valorem tax.

Go to this section in Credit Karma Tax: Other Taxes Paid

As a result of the Tax Cuts and Jobs Act of 2017 (2017 tax reform): itemized deductions for personal property taxes and personal state and local income taxes (or sales taxes) are limited to a combined total of $10,000 for individuals, or $5,000 if using the married filing separately filing status.

The personal property taxes you deduct must meet all three criteria:

  1. The property is used (at least partly) for personal use and not used fully for business use. For example, if you are a childcare provider who uses your home to provide services.
  2. The tax is based only on the value of the property.
  3. The tax is charged on an annual basis.

You can typically deduct personal property taxes paid for vehicles, boats, or other property that’s taxed annually at the state or local level. But you’re only allowed to deduct the portion of the tax or registration that corresponds with the value of the property.
Source: irs.gov

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