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New Member
posted Jun 4, 2019 4:40:05 PM

How do you claim sales tax for home improvements

We did some home improvements this year including adding granite counter tops, replacing a door and installing a tile  backsplash.  Is there a way to include these high dollar purchases in my sales tax estimate?

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1 Best answer
New Member
Jun 4, 2019 4:40:06 PM

Yes, you will include the sales tax on these improvements under the "building material" category under the major purchases under sales tax. This additional major purchase is only allowed for materials used on a personal residence (any rental improvements will be included under the rental section)

A few things to remember about this deduction, you will only get this extra deduction if:

  • The sales tax rate on this major purchase needs to be the same rate as your state's general sales tax rate.
  • You are taking the state's sales tax deduction as opposed to the state's income tax deduction.
  • You itemize on your return.

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. 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 building material information and sales tax here on the next screen. (screenshot)

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 building material purchases. 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.


4 Replies
New Member
Jun 4, 2019 4:40:06 PM

Yes, you will include the sales tax on these improvements under the "building material" category under the major purchases under sales tax. This additional major purchase is only allowed for materials used on a personal residence (any rental improvements will be included under the rental section)

A few things to remember about this deduction, you will only get this extra deduction if:

  • The sales tax rate on this major purchase needs to be the same rate as your state's general sales tax rate.
  • You are taking the state's sales tax deduction as opposed to the state's income tax deduction.
  • You itemize on your return.

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. 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 building material information and sales tax here on the next screen. (screenshot)

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 building material purchases. 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.


New Member
Jun 4, 2019 4:40:07 PM

I've gone through the Easy Guide and I'm not seeing an option to enter major purchases.

New Member
Jun 4, 2019 4:40:08 PM

Never mind, I found it!

New Member
Jun 4, 2019 4:40:10 PM

Another question, can you claim the sales tax on the purchase of a new heating system and sliding glass door as well?