Is car sales tax deductible?

In states that don't have a sales tax, the law provides a deduction for other taxes or fees paid. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A. The deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible vehicle. read more

The sales tax deduction works best for people who live in states with no income tax, or whose sales tax deduction is larger than their state income tax deduction would be. If your state has a significant income tax rate, you'd have tallied up a lot of sales taxes during the year to make this deduction worth your while. read more

There is a vehicle sales tax deduction but you will have to choose between taking this deduction or claiming your state income tax. You can deduct sales tax on a vehicle purchase, but only the state and local sales tax. However, you can only claim this deduction if you do so instead of claiming a deduction for state income tax. read more