Sales tax deduction in Connecticut
Varies
Is Sales Tax Deductible in Connecticut?
Short answer: Only instead of income tax: itemizers in Connecticut pick sales tax (6.35% state rate, about 6.35% with local taxes) or state income tax, whichever is bigger. Most vehicles priced over $50,000 are taxed at 7.75% on the entire price (as are jewelry over $5,000 and clothing over $1,000); no local sales taxes.
Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Sales tax deduction in Connecticut
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in Connecticut pick sales tax (6.35% state rate, about 6.35% with local taxes) or state income tax, whichever is bigger. Most vehicles priced over $50,000 are taxed at 7.75% on the entire price (as are jewelry over $5,000 and clothing over $1,000); no local sales taxes.
Business justification
Only instead of income tax: itemizers in Connecticut pick sales tax (6.35% state rate, about 6.35% with local taxes) or state income tax, whichever is bigger. Most vehicles priced over $50,000 are taxed at 7.75% on the entire price (as are jewelry over $5,000 and clothing over $1,000); no local sales taxes. Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Category
- Personal Tax Deductions