Sales Tax - Home
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Before claiming a deduction for sales tax on your home, check your real estate bill to make sure you paid sales tax.

Per IRS Instructions for Schedule A, page 6:

Line 7. Enter on line 7 any state and local general sales taxes paid on the following specified items. If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets.

  1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Also include any state and local general sales taxes paid for a leased motor vehicle. If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate.
  2. An aircraft or boat, but only if the tax rate was the same as the general sales tax rate.
  3. A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies.
        a.  Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation.
        b.  You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly.
        c.  Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly.

To claim your State and Local General Sales Tax Deduction, for sales tax you paid on your home, in the TaxAct program (if you need help accessing the sales tax section of the TaxAct program, go to our Sales Tax - Entering in the Program FAQ):

  1. From within the sales tax deduction section of the TaxAct program, continue with the interview process until you reach the screen titled Choose your sales tax calculation method, then click Table Amount.
  2. On the screen titled Enter sales tax you paid on specified items, click the data entry field below General sales taxes paid on specified items, and type the amount of sales tax you paid for your home.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.