Houston TX Buick GMC Tax Season Car Deals

The US Internal Revenue Service provides a deduction on the sales tax paid for the purchase of a car on Form 1040, Schedule A. You can't claim a tax deduction unless you decide to itemize. You are permitted to deduct the tax whether you buy from a private party or dealer.

Disclaimer. Always consult a federal tax professional when filing deductions on your income taxes.

You can deduct the sales tax whether charged on a new or used car or truck. One can only make a sales tax deduction that is equal to what was paid when the vehicle was purchased by adding it to the Sales Tax Table for the appropriate state, as well as the car registration fees that you paid, if the fee is based on the value of the car. Furthermore, those expenses are deductible if itemized only. In the specific case of sales tax, it needs to be higher than the state income tax that you paid.