Business & farm

Yes. The IRS has ruled this year, that it is an income tax and is deductible on itemized deductions as a state tax. There are several ways to enter the tax.

The easiest is when you enter your W2, box 14 category should be other deductible state tax. This should go to line 5a.

If you choose another method, that is fine, line 6 is still part of the state and local tax section.

Reference: Rev. Rul. 2025-4