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Deductions & credits
No, States and Cities will give a credit up to the amount you would have been taxed in that state or city.
If you live in City 1 (10.5% tax)
And you buy in City 2 (10.8% tax)
You can only get the credit for the City 1 10.5% tax
If you live in City 2 (10.8%)
And buy in City 1 (10.5%)
You will get credit for the full 10.5% paid to City 1
But you will be charged an additional 0.3% tax in city 2.
You always pay the higher of the two.
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March 25, 2025
11:49 AM