Sales tax deduction on car bought out of state

[baileycl]

I bought a car in California but live in Washington (and Arizona in the winter).  Can I deduct the sales tax I paid in California?  TurboTax is asking for the dates I lived in California…

[TeresaM · Accepted solution]

If you itemize your deductions, you choose between deducting your state and local income taxes or your state and local sales taxes. You can't claim both and you can't claim either one if you're taking the Standard Deduction.

If you choose  the sales tax deduction, you can claim the sales taxes you paid on almost anything you have bought, whether it was purchased online or locally, in-state or out-of-state.

However, for tax years 2018 through 2025, the SALT deduction (which includes sales tax) is capped at $10,000. That means if the combined total of your sales tax, real estate tax, and personal property tax amounts to $15,000, you can only deduct $10,000 maximum.

If the question about dates lived in California are stopping the return from processing, please let us know if this is happening while you are entering information, during Review, or when you attempt to e-file, so we may better assist.