Congress has extended the federal income tax deduction for Washington sales tax that allows residents to deduct state sales taxes on their federal tax returns if they itemize deductions.
When is the deduction effective?
The deduction is available through the 2007 tax year.
Who can take the deduction?
The deduction is available only to taxpayers who itemize their deductions, not those who take the standard deduction.
What are the state and local sales tax rates?
The state sales tax rate is 6.5% and the local sales tax rate varies. See our list of local tax rates to find the rate at your residence.
Can I deduct tax on gas or diesel?
No. The tax on gasoline and diesel for on-road use is not a sales tax. The federal deduction is for sales tax only.
What about the RTA Tax?
Yes. The Regional Transit Authority (RTA) tax qualifies for the federal sales tax deduction. The RTA tax is a part of the general sales tax in much of Snohomish, King, and Pierce Counties. Take a look at our local tax rate chart to see the tax rate for locations located within the RTA.
What about the additional sales tax on motor vehicles?
The additional 0.3% tax that applies to sales of motor vehicles is not deductable since this tax only applies to one class of property.
Where do I take the deduction on my federal tax return?
People using a paper 1040 federal form and claiming the key extender provisions should follow these steps:
State and Local General Sales Tax Deduction:
- The deduction for state and local general sales taxes will be claimed on Schedule A (Form 1040), line 5, “State and local income taxes.” Enter "ST" on the dotted line to the left of line 5 to indicate you are claiming the general sales tax deduction instead of the deduction for state and local income tax.
- The IRS also issued Publication 600 (pdf) for 2006, which includes the state and local sales tax tables, a worksheet and instructions for figuring the deduction.
This option is available to all taxpayers regardless of where they live, though it’s primarily designed to benefit residents of states with either minimal or no state and local income taxes.