JohnB5677
Expert Alumni

Deductions & credits

You asked  "Can you do this on your state taxes as well?"

Sales tax may be a deduction on your state tax (every state may be different). 

 

You also asked "Can you use Sales Tax paid against your Tax liability vs Income Tax paid to date?"

No, Sales tax and income tax are two different taxes.   You may be able to deduct sales tax from income in some states, but they do not count as a credit against your income tax liability.

 

A simplified example;  I earned $25,000, I paid $1,500 in sales tax, My state tax rate is 5%

$25,000 income - $1,500 Sales tax = $24,500

$24,500 X 5% = $1,225 in Income tax

You will fave to check you personal home state to see if there is a sales tax deduction.

 

@Evolvant 

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