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If I bought a used car in 2015, can I deduct the sales tax I paid on it?

No. You can deduct state and local sales and excise taxes you paid on the purchase of a new:

  • Car
  • Light truck
  • Motor home
  • Motorcycle
  • Off-road vehicle
  • Boat
  • Aircraft

The deduction is currently available on new vehicles bought in 2015. If the sales tax on these types of vehicles is higher than the general sales tax rate, you can only deduct sales tax up to the general sales tax rate. You can deduct either of these:

  • State and local sales taxes, including those paid on these:
    • New vehicle
    • Home
    • Home improvements
  • State and local income taxes

However, you can’t deduct both.

If you deduct sales taxes, you can either:

  • Save sales receipts and deduct actual sales taxes paid.
  • Use the IRS’s sales tax tables to figure the deduction. You can find the tables in the Form 1040 instructions or use the IRS calculator.

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