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Sales taxes

State and local general sales taxes you pay may be deductible if you itemize. But you must choose between deduction sales taxes or deducting city and state income taxes. If you live in a state that does not impose an income tax, claim the sales tax deduction. You don’t need to keep all your receipts, either. The IRS has a handy table with estimates based on your income, family size and where you live. You can add to the table amount sales taxes paid on cars, boats, aircraft and other big ticket items. Purchase of such items could lead some taxpayers in income-tax states to pay more sales tax than income tax. You can choose whichever deduction is most valuable to you.