Last week I bought turbo tax deluxe at Costco and when I install it says turbo tax 2016 not 2017. Did they sell the wrong version ?

Now I see in small print on the box it says "for tax year 2016.  Why would they be selling that ?  I guess its back to Costco ASAP.

Get your taxes done using TurboTax

Several places still sell prior year versions since those are used to file or amend prior year returns. But yes, I'd recommend returning and make sure you select one with 2017 if you are wanting to file 2017 return instead.