Actual Expenses

Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2025 if the tax rate was the same as the general sales tax rate.

Food, clothing, and medical supplies.

Sales taxes on food, clothing, and medical supplies are deductible as a general sales tax even if the tax rate was less than the general sales tax rate.

Motor vehicles.

Sales taxes on motor vehicles are deductible as a general sales tax even if the tax rate was different than the general sales tax rate. However, if you paid sales tax on a motor vehicle at a rate higher than the general sales tax, you can deduct only the amount of the tax that you would have paid at the general sales tax rate on that vehicle. Include any state and local general sales taxes paid for a leased motor vehicle.

Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles.

You must keep your actual receipts showing general sales taxes paid to use this method.

Trade or business items.

Don't include sales taxes paid on items used in your trade or business. Instead, go to the instructions for the form you are using to report business income and expenses to see if you can deduct these taxes.

Refund of general sales taxes.

If you received a refund of state or local general sales taxes in 2025 for amounts paid in 2025, reduce your actual 2025 state and local general sales taxes by this amount. If you received a refund of state or local general sales taxes in 2025 for prior year purchases, don't reduce your 2025 state and local general sales taxes by this amount. However, if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Schedule 1 (Form 1040), line 8z. See Recoveries in Pub. 525 for details.