Sales Taxes Deduction
Can I deduct sales tax I paid from my taxes?
General sales taxes can be deducted on your tax return as follows. You can elect to deduct:
However, you cannot deduct both state and local general sales taxes and income taxes.
How much sales tax deduction can I claim?
To figure your sales tax deduction you can use either of the following methods:
Method 1: Actual state and local general sales taxes
The actual state and local general sales taxes (including compensating use taxes) you paid in
the tax year if the tax rate was the same as the general sales tax rate. Sales taxes
on food, clothing, medical supplies, and motor vehicles are tax deductible as a general sales tax even if the tax
rate was less than the general sales tax rate.
Are sales taxes on motor vehicles tax deductible?
Sales taxes on motor vehicles are also tax deductible as general sales tax if the tax rate
was more than the general sales tax rate, but the tax is deductible only up to the
amount of tax that would have been imposed at the general sales tax rate.
Motor vehicles include:
- motor homes
- recreational vehicles
- off road vehicles
Also include any state and local general sales taxes paid for a leased motor vehicle. You
must keep your actual receipts showing general sales taxes paid if you use this method.