Is the sales tax on the purchase of a new car in TN not deductible because it is 7% rather than the 9.5% we pay in Johnson City, TN

[bwa · Accepted solution]

It is deductible.  Sales tax on autos is one of the few items where the sales tax on the auto does not need to be at the general tax rate.  Make sure you identify the item as an automobile when you are entering it.