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Deductions & credits
The reason you can't claim a sales tax deduction for your home's excise tax is that an excise tax is not a sales tax. There is a provision in the federal tax code that allows you to deduct sales taxes, but none for excise taxes.
Excise taxes differ from sales taxes in one important way.
Excise taxes are legislated on specific goods. The most common examples are luxury goods (e.g. yachts, airplanes) or those that have been linked to specific health issues like cigarettes, alcohol and tanning salons. They are often flat taxes, but can be based on the purchase price or value.
Sales taxes apply to just about everything you buy (usually with specific exceptions such as unprepared food and clothing).
‎February 1, 2021
9:32 AM