Sales tax deduction in New York
Varies
Is Sales Tax Deductible in New York?
Short answer: Only instead of income tax: itemizers in New York pick sales tax (4% state rate, about 8.54% with local taxes) or state income tax, whichever is bigger. Clothing and footwear under $110 per item is exempt from the 4% state tax, and also from local tax only where localities opt in (New York City does).
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 New York
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in New York pick sales tax (4% state rate, about 8.54% with local taxes) or state income tax, whichever is bigger. Clothing and footwear under $110 per item is exempt from the 4% state tax, and also from local tax only where localities opt in (New York City does).
Business justification
Only instead of income tax: itemizers in New York pick sales tax (4% state rate, about 8.54% with local taxes) or state income tax, whichever is bigger. Clothing and footwear under $110 per item is exempt from the 4% state tax, and also from local tax only where localities opt in (New York City does). 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