Sales tax deduction in Massachusetts
Varies
Is Sales Tax Deductible in Massachusetts?
Short answer: Only instead of income tax: itemizers in Massachusetts pick sales tax (6.25% state rate, about 6.25% with local taxes) or state income tax, whichever is bigger. Groceries are exempt, and clothing is exempt up to $175 per item, with tax due only on the amount above $175.
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 Massachusetts
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in Massachusetts pick sales tax (6.25% state rate, about 6.25% with local taxes) or state income tax, whichever is bigger. Groceries are exempt, and clothing is exempt up to $175 per item, with tax due only on the amount above $175.
Business justification
Only instead of income tax: itemizers in Massachusetts pick sales tax (6.25% state rate, about 6.25% with local taxes) or state income tax, whichever is bigger. Groceries are exempt, and clothing is exempt up to $175 per item, with tax due only on the amount above $175. 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