---
title: Deduct Sales tax or State Income tax?
description: Income or sales tax — you have a choice on your 2016 tax return
image: https://info.ongandcompany.com/hubfs/Decision.jpg
---

[![](https://info.ongandcompany.com/hubfs/Backgrounds/ong-final_sig.jpg)](http://www.ongandcompany.com/)

# Deduct sales Tax or State Income tax?

[Richard Ong](https://info.ongandcompany.com/blog/author/richard-ong) / February 04, 2017 /

[Tax Deductions](https://info.ongandcompany.com/blog/topic/tax-deductions)

![](https://app.hubspot.com/settings/avatar/89ca6f67445537c2c631f1fe9d43c977)

When you itemize your deductions, you can deduct either state and local income taxes or general state and local sales taxes on your 2016 tax return. But you can't have it both ways — it's one or the other.

Typically, you might write off your state and local income taxes. This includes amounts withheld from your paychecks and estimated taxes paid during the year such as quarterly installments for self-employed individuals. If you live in a high-tax state like California or New York, this deduction is often one of the biggest — if not *the* biggest — on your return.

However, there's an alternative that might appeal to some taxpayers. In lieu of state and local income taxes, you can deduct the sales taxes you've paid this year. This option is especially attractive to taxpayers residing in the handful of states that don't impose any state income tax.

This alternate deduction for state sales taxes has expired and been reinstated several times in the past. Finally, the Protecting Americans from Tax Hikes (PATH) Act in 2015 made this option a permanent part of the tax code.

If you itemize your deductions, there are two ways to deduct sales taxes:

- **Option 1:** Claim the actual amount of sales tax paid during the year. This requires you to keep receipts or other documentation of purchases.

- **Option 2:** Use the state-by-state table provided by the IRS. The deduction is based on your state, your income and the number of exemptions on your tax return.

Often, the table amount is lower, but more convenient. But, you can add to this sales tax table calculation by amounts paid for the lease or purchase of a vehicle; the purchase of a boat or aircraft; and the purchase of substantial home additions or renovations. In some cases, the extra tax for these "big-ticket items" may push you to use this as an alternative to the state income tax deduction.

Give us a call. We can help you make sure you have all the information needed to make the optimal choice on your 2016 tax return.

[![Download 2016 Tax Guide (Tools, Rates, and Deadlines)](https://no-cache.hubspot.com/cta/default/2284926/1a6fec97-04af-4249-8937-9751dc5fb94b.png)](https://cta-redirect.hubspot.com/cta/redirect/2284926/1a6fec97-04af-4249-8937-9751dc5fb94b)

 

- [Tweet](https://twitter.com/share)

### Subscribe

### Recent Posts

### Topics

- [Business Taxes (2)](https://info.ongandcompany.com/blog/topic/business-taxes)
- [Client Spotlight (18)](https://info.ongandcompany.com/blog/topic/client-spotlight)
- [COVID-19 Relief (2)](https://info.ongandcompany.com/blog/topic/covid-19-relief)
- [Education Savings (5)](https://info.ongandcompany.com/blog/topic/education-savings)
- [Education Tax Benefits (10)](https://info.ongandcompany.com/blog/topic/education-tax-benefits)
- [Education Tax Credits (2)](https://info.ongandcompany.com/blog/topic/education-tax-credits)
- [Estate Planning (1)](https://info.ongandcompany.com/blog/topic/estate-planning)
- [Estate Tax (3)](https://info.ongandcompany.com/blog/topic/estate-tax)
- [Financial Statements (1)](https://info.ongandcompany.com/blog/topic/financial-statements)
- [Flexible Spending Accounts (2)](https://info.ongandcompany.com/blog/topic/flexible-spending-accounts)
- [Health Insurance (3)](https://info.ongandcompany.com/blog/topic/health-insurance)
- [Home Office Deductions (1)](https://info.ongandcompany.com/blog/topic/home-office-deductions)
- [Information Reports (3)](https://info.ongandcompany.com/blog/topic/information-reports)
- [Kansas Sales Tax (1)](https://info.ongandcompany.com/blog/topic/kansas-sales-tax)
- [Nonprofits (1)](https://info.ongandcompany.com/blog/topic/nonprofits)
- [One Big Beautiful Bill Act (1)](https://info.ongandcompany.com/blog/topic/one-big-beautiful-bill-act)
- [Partnership Rules (1)](https://info.ongandcompany.com/blog/topic/partnership-rules)
- [Payroll (6)](https://info.ongandcompany.com/blog/topic/payroll)
- [Real Estate (7)](https://info.ongandcompany.com/blog/topic/real-estate)
- [Retirement Savings (17)](https://info.ongandcompany.com/blog/topic/retirement-savings)
- [Self Employment (13)](https://info.ongandcompany.com/blog/topic/self-employment)
- [Starting a New Business (7)](https://info.ongandcompany.com/blog/topic/starting-a-new-business)
- [State PTET Updates (1)](https://info.ongandcompany.com/blog/topic/state-ptet-updates)
- [Tax Cuts and Jobs Act (1)](https://info.ongandcompany.com/blog/topic/tax-cuts-and-jobs-act)
- [Tax Debt (3)](https://info.ongandcompany.com/blog/topic/tax-debt)
- [Tax Deductions (82)](https://info.ongandcompany.com/blog/topic/tax-deductions)
- [Tax Fraud (5)](https://info.ongandcompany.com/blog/topic/tax-fraud)
- [Tax Planning (86)](https://info.ongandcompany.com/blog/topic/tax-planning)
- [Tax Representation (5)](https://info.ongandcompany.com/blog/topic/tax-representation)
- [The Corporate Transparency Act (1)](https://info.ongandcompany.com/blog/topic/the-corporate-transparency-act)
- [Unclaimed Property (1)](https://info.ongandcompany.com/blog/topic/unclaimed-property)

[See all](https://info.ongandcompany.com/blog/deduct-sales-tax-or-state-income-tax#)

### Archive

- [June 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/06)
- [May 2026 (2)](https://info.ongandcompany.com/blog/archive/2026/05)
- [April 2026 (2)](https://info.ongandcompany.com/blog/archive/2026/04)
- [March 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/03)
- [January 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/01)
- [November 2025 (1)](https://info.ongandcompany.com/blog/archive/2025/11)
- [September 2025 (2)](https://info.ongandcompany.com/blog/archive/2025/09)
- [August 2025 (3)](https://info.ongandcompany.com/blog/archive/2025/08)
- [July 2025 (4)](https://info.ongandcompany.com/blog/archive/2025/07)
- [December 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/12)
- [September 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/09)
- [February 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/02)
- [October 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/10)
- [September 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/09)
- [July 2023 (2)](https://info.ongandcompany.com/blog/archive/2023/07)
- [June 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/06)
- [November 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/11)
- [September 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/09)
- [July 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/07)
- [December 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/12)
- [November 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/11)
- [April 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/04)
- [January 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/01)
- [December 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/12)
- [October 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/10)
- [June 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/06)
- [April 2020 (2)](https://info.ongandcompany.com/blog/archive/2020/04)
- [March 2020 (4)](https://info.ongandcompany.com/blog/archive/2020/03)
- [February 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/02)
- [January 2020 (2)](https://info.ongandcompany.com/blog/archive/2020/01)
- [December 2019 (1)](https://info.ongandcompany.com/blog/archive/2019/12)
- [November 2019 (1)](https://info.ongandcompany.com/blog/archive/2019/11)
- [October 2019 (4)](https://info.ongandcompany.com/blog/archive/2019/10)
- [September 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/09)
- [August 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/08)
- [July 2019 (4)](https://info.ongandcompany.com/blog/archive/2019/07)
- [June 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/06)
- [May 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/05)
- [April 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/04)
- [March 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/03)
- [February 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/02)
- [January 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/01)
- [December 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/12)
- [November 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/11)
- [October 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/10)
- [September 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/09)
- [August 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/08)
- [July 2018 (2)](https://info.ongandcompany.com/blog/archive/2018/07)
- [June 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/06)
- [May 2018 (5)](https://info.ongandcompany.com/blog/archive/2018/05)
- [April 2018 (1)](https://info.ongandcompany.com/blog/archive/2018/04)
- [March 2018 (2)](https://info.ongandcompany.com/blog/archive/2018/03)
- [February 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/02)
- [January 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/01)
- [December 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/12)
- [November 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/11)
- [October 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/10)
- [September 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/09)
- [August 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/08)
- [July 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/07)
- [June 2017 (7)](https://info.ongandcompany.com/blog/archive/2017/06)
- [May 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/05)
- [April 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/04)
- [March 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/03)
- [February 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/02)
- [January 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/01)
- [December 2016 (7)](https://info.ongandcompany.com/blog/archive/2016/12)
- [November 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/11)
- [October 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/10)
- [September 2016 (6)](https://info.ongandcompany.com/blog/archive/2016/09)
- [August 2016 (7)](https://info.ongandcompany.com/blog/archive/2016/08)
- [July 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/07)
- [June 2016 (4)](https://info.ongandcompany.com/blog/archive/2016/06)

[See all](https://info.ongandcompany.com/blog/deduct-sales-tax-or-state-income-tax#)

 © Copyright 2016 | Ong & Company. All rights reserved.

**