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I live in Washington state, can I deduct the tax charged on liquor and on marijuana? I believe it is considered a sales tax based on the value of the sale.

 
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IsabellaG
Expert Alumni

I live in Washington state, can I deduct the tax charged on liquor and on marijuana? I believe it is considered a sales tax based on the value of the sale.

No, because only general sales tax is deductible, and these items are taxed at a different (higher) rate than the general sales tax rate. You are limited to claiming either the deduction computed by using the sales tax table amount applicable to your income, or adding up all of your receipts for the year for items taxed at the general rate. Or you can add certain major purchases to the sales tax table amount.

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1 Reply
IsabellaG
Expert Alumni

I live in Washington state, can I deduct the tax charged on liquor and on marijuana? I believe it is considered a sales tax based on the value of the sale.

No, because only general sales tax is deductible, and these items are taxed at a different (higher) rate than the general sales tax rate. You are limited to claiming either the deduction computed by using the sales tax table amount applicable to your income, or adding up all of your receipts for the year for items taxed at the general rate. Or you can add certain major purchases to the sales tax table amount.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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