Can I deduct my state sales tax and my local sales tax?
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.
If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.
From retirement account contributions to self-employment expenses, learn more about the five most common tax deductions with the experts at H&R Block.
Getting married? Having a baby? Buying a house? Go through your life events checklist and see how each can affect your tax return with the experts at H&R Block.
Donating household goods to your favorite charity? Learn the ins and outs of deducting noncash charitable contributions on your taxes with the experts at H&R Block.