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Sales Tax Deduction for New Vehicle Purchase in States without Sales Tax


On June 11, 2009 the U.S. Department of Treasury announced that a tax deduction for the purchase of a new auto is available in states that do not have a state sales tax.  As part of the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new vehicle this year are entitled to deduct the state or local sales or excise taxes paid on the purchase.

Currently the states of Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon do not have a sales tax laws on the books.  So, the Treasury is allowing a deduction in these states as well.

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