Skip to main content
Level 1
June 1, 2019
Question

Can I deduct the sales tax paid for a new roof?

  • June 1, 2019
  • 1 reply
  • 22 views
No text available

1 reply

MargaretL
Level 12
June 1, 2019

Yes, you can.

To enter sales tax:

  1. Federal Taxes
  2. Deductions and Credits
  3. Estimates and Other Taxes Paid
  4. Sales Tax

Note: For most people, the state and local income taxes paid usually gives them the higher deduction, but for others, the sales tax deduction may give them a greater benefit, for example:

  • Residents of states that don't collect state and local income tax (Alaska, Florida, Nevada,  South Dakota, Texas, Washington, and Wyoming)
  • Taxpayers who made major purchases during the tax year that were subject to sales tax (we're talking major as in cars, boats, airplanes, RVs, etc.)
  • Residents of states with a high sales tax rate.

If you meticulously keep all your sales receipts, you can add up the taxes to get a total. 

If you are not itemizing your deductions, the amount will not impact your federal tax return.