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February 20, 2025
Question

tax and deduction worksheet asking for total sales tax rate I have not idea what this is

  • February 20, 2025
  • 1 reply
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    1 reply

    DawnC
    Employee
    February 20, 2025

    It is for the sales tax deduction.  If you're itemizing, you get to choose between deducting your state and local income taxes or your state and local sales taxes. You cannot claim both, and you can't claim either one if you're taking the standard deduction.

     

    Here's how to find your total state and local sales tax rate:

     

    • Look for the sales tax rate (percentage) on store receipts you received in 2024.
    • Ask a local merchant for the sales tax rate they charge.
    • Contact your local taxing agency.

    Make sure you enter your total sales tax rate. Depending on where you lived, you could have one of the following tax rates:

     

    • Both state and local sales taxes: To get the total sales tax rate, add the state tax rate and the local tax rate.
    • No state or local sales tax: Enter the sales tax rate as 0.
    • State sales tax, but no local tax: Enter the state sales tax rate.
    • No state sales tax, but local tax: In this case (except Alaska residents), we cannot calculate your sales tax deduction for you. You must enter the total amount of sales tax you actually paid.

    You can go back to the Sales Tax Deduction entry screen in TurboTax.   Search for sales tax and use the Jump to sales tax link.   Use the Easy Guide option and click through the screens.   You are asked for your total sales tax rate in the interview.  

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