JohnB5677
Expert Alumni

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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