Question

Can I include the sales tax in the price of an item I’m claiming for a deduction?

Answer

Yes. If you’re allowed to deduct certain expenses, you can deduct the full cost of the expense including sales tax.

However, you might have deducted local and state sales tax — instead of state and local income taxes — on Schedule A. If so, you can’t claim the sales tax you paid on property you contributed to a charity for both your:

  • Sales tax deduction
  • Charitable deductions

Related Topics

Related Resources

Filing for a Deceased Taxpayer

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.

Don’t overlook the 5 most common tax deductions

From retirement account contributions to self-employment expenses, learn more about the five most common tax deductions with the experts at H&R Block.

New baby or house? How major life changes affect your taxes

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.

Spring Cleaning: Your Household Goods, Your Tax Deductions

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.