Personal Property Tax Deduction

You can take personal property tax deductions by listing them as an itemized deduction.

Personal property tax is a tax which is based upon the value of personal property. Personal property is everything that is not real property, that is to say, everything that is not real estate. Examples of personal property include motor vehicles, trailers, mobile homes, boats, etc. The personal property taxes are assessed on an annual basis, are usually very small and not every state or locality assess them.

For example, say your annual car registration fee is based on a formula that charges $1 per $100 of value. If you had a vehicle with a value estimated by the state at $20,000, then your tax would be $200.