We paid "exit" taxes to our state and local government for thge sale of our house. Are these deductible?

[IreneS · Accepted solution]

No.  An "exit tax" is really a prepayment of tax (like an estimated tax payment) in case you "forget" to include the sale of your home on the state/local return.

Despite the confusion caused by calling it an exit tax, the law simply requires the seller to pay state tax in advance.

For example:  New Jersey withholds either 8.97% of the profit or 2% of the selling price, whichever is higher.  If you lost money on the sale of your house, and 2% tax was prepaid before you left the state, you would receive a full refund when you file your New Jersey state income tax.

Several states and localities have "exit taxes."