Can I deduct state or local income tax on my federal return?

by TurboTax •   320
Updated December 19, 2025 9:00 AM

You might be able to get a federal deduction for state or local income taxes you paid in 2025, even if they were for an earlier tax year.

To get this deduction, you'll need to itemize. There's a cap on the SALT deduction (state and local tax) which may limit the amount you can deduct.

Nevertheless, you should enter these payments and we'll figure out if they're deductible or not:

  • Open or continue your return.

  • Navigate to the taxes paid section:

    • TurboTax Online/Mobile: Go to the taxes paid screen under Deductions & Credits.

    • TurboTax Desktop:

      • Go to Federal Taxes.

      • Go to Deductions & Credits.

      • If asked How do you want to enter…?, select I’ll choose what I work on.

      • Select Visit All next to Estimates and Other Taxes Paid.

      • Select Yes on the next screen.

  • On the Estimates and Other Income Taxes Paid screen, select Start or Update next to the appropriate topic under the heading that applies to your situation:

    • Estimated Tax Payments to enter 2024 or 2025 state/local estimated payments

    • Payments With Extension to enter 2024 or 2025 state/local payments you made with your state or local extension

    • 2024 Refund Applied to 2025 if you applied any portion of last year's state/local refund to this year's state or local return

    • Other Income Taxes Paid in 2025 if you paid 2024 or earlier state/local taxes

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