is now 
Taxpayers
who have paid state income tax or have paid state sales taxes, and who itemize
their deductions may claim the amount paid as an itemized deduction on their federal
tax return, but they must choose between the two.
For example, if you made a large purchase, such as an automobile, that incurred a substantial sales tax charge, you can choose your sales taxes paid OR the your state income taxes paid in the tax year as a deduction. Most taxpayers would choose to deduct the higher amount.
There are four types of deductible non-business taxes:
- State, local and foreign income taxes
- State, local and foreign real estate taxes
- State and local personal property taxes
- State and local general sales taxes
To claim the taxes, they must be reported as an itemized deduction. For most people, their state and local income taxes paid exceeds sales taxes paid.
