Question

Can I deduct my state sales tax and my local sales tax?

Answer

You can deduct one of these:

  • State sales tax and local sales tax
  • State and local income taxes

If you deduct state sales tax and local sales tax, you can either:

  • Save sales receipts and deduct actual sales taxes paid.
  • Use the IRS’s sales tax tables to figure the deduction. The tables are on the Form 1040 instructions.

If you use the sales tax tables, you can also include sales taxes you paid for a car, boat, or other vehicle. However, the item might be taxed at a rate higher than the general sales tax rate. If so, you can only include the taxes you paid up to the amount of the general sales tax rate.

Report your deductible state income taxes or sales taxes on Schedule A. You can also deduct state real estate taxes and personal property taxes on Schedule A.

Related Topics

Related Resources

Do I Need to File a Tax Return?

Do you need to file taxes? Find out if the IRS requires you to file a tax return with the experts at H&R Block.

Michigan Tax Refund

Want to know when you will get your Michigan state refund? Here we’ll cover the details of checking on and receiving your Michigan tax refund.

Credit for Prior-Year Minimum Tax – Form 8801

Learn about IRS Form 8801 with help from H&R Block. Our tax pros explain how the credit for prior-year minimum tax may affect you.

Where’s my refund – Connecticut?

Looking for more information about your Connecticut refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.