Income Tax Season Car Deals for Acura in Houston Area

The US Internal Revenue Service allows a deduction on sales tax paid on a purchase of a car by itemizing on Schedule A on Form 1040. You can’t deduct sales tax unless you decide to itemize. You may deduct this tax whether you buy from a private party or auto dealership.

Disclaimer. Always consult an income tax adviser when filing deductions on your taxes related to a car.

Yes, you are able to deduct the tax whether charged on a used or new vehicle. Generally speaking, one can only claim a sales tax deduction that is equal to what was paid when the car or truck was purchased by adding it to the Sales Tax Table for your state, along with the vehicle registration fees paid, if your state bases the fee upon the value of the car. Those expenses are deductible only when itemized. In the specific case of sales tax, it is required to be higher than the state income tax that was paid.