RealCarTips Logo

Tax Deductions Extended to States Without Sales Tax

June 18, 2009

The American Recovery and Reinvestment Act of 2009, which passed earlier this year, allows taxpayers to deduct state or local sales (or excise) taxes when buying a new car.

That's great for car buyers living in states with high tax rates, but what about buyers in states like Alaska, Delaware, Hawaii, Montana or Oregon which don't have state tax?

Now there's good news. Buyers from states with no sales tax will still benefit. Taxpayers in these states can now deduct other fees and taxes imposed by the state or city based on the car's sales price.

To qualify, the car has to be purchased between February 16, 2009 and January 1, 2010, and is good for fees or taxes paid on up to $49,500 of the purchase price of the car.

My Recommendation for Car Shoppers

TrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
  • Best Rebates, Incentives, and Lease Deals
  • Latest Car Buying Scams and Tricks
  • The Best & Worst Time to Buy a Car
  • Which Cars You Should Avoid
Enter Your Email Below

(Absolutely NO SPAM, easy to unsubscribe)
×

Gregg Fidan

About: Gregg Fidan


Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

Latest Weekly Car Buying Tips    RSS Feed

December 6, 2018
November 29, 2018
November 22, 2018
November 15, 2018
November 8, 2018
November 1, 2018
October 25, 2018
October 18, 2018
October 11, 2018
October 4, 2018
September 27, 2018
September 20, 2018
September 13, 2018
September 6, 2018
August 30, 2018
August 23, 2018
August 16, 2018
August 9, 2018
August 2, 2018
July 26, 2018
July 19, 2018
July 12, 2018
July 5, 2018
June 28, 2018
June 21, 2018
June 14, 2018
June 7, 2018
I welcome your car buying questions. Email Me and I'll be glad to answer them!