Are the State sales tax paid on new car purchase deductible?

Yes but you would only be able to claim this deductions if you itemize and take the state sales tax deduction (as opposed to the state income tax deduction). If this is your only itemized deductions, you will want to just take the standard deduction.

To enter this transaction in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "Sales Tax Deduction" in the search bar then select "jump to Sales Tax Deduction". TurboTax will guide you in entering this information.

Alternatively, to enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Deductions & Credits”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
5. Choose "show more", then Sales Tax (start/update/revisit)
6. Choose - continue to sales tax and choose "Easy Guide"
7. Enter your state sales tax information (If your state sales tax information is already entered you will need to edit it to enter your major purchases information.)
8. On the screen that says Major Purchase - select "yes"
9. Enter your vehicle information and sales tax here on the next screen.

As noted above: you are only allowed the major purchase additional sales tax amount if the sales rate you used for your general state sales tax rate is the same sales tax rate on your major purchase.

So if you used a 8% general sales tax rate for your state, this would have to be the same sales tax rate for your vehicle purchase. Just make sure that when you enter this information under the "Major Purchase" section, that your sales tax divided by your cost is your general state's sales tax rate