Can you include tax on gas when itemizing state tax?

[xmasbaby0]

NO.  

[Opus 17 · Accepted solution]

No.

You can either deduct 

(a) state general sales tax OR

(b) state income tax.

If you choose to deduct state general sales tax, you can choose from two methods:

(i) add up all your sales tax from receipts OR

(ii) use the standard amount allowed by the IRS based on your income and your tax rate.  If you use the standard amount method, you can on top of the standard method any sales tax you paid for the purchase of a motor vehicle, home, or substantial renovation to a home.

The problem is that gas tax is not considered sales tax.  To be eligible for the deduction, a sales tax must be a percentage tax charged equally on all goods and services.  Gasoline tax is a combination of many taxes and fees (cents per gallon federal excise tax + cents per gallon state excise tax + highway tax + other fees + maybe a percentage sales tax).  That makes it not eligible to deduct as general sales taxes.  The same is true for other special taxes such as on alcohol and tobacco.