Tax Deductions Extended to States Without Sales Tax

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 No-Haggle, CarsDirect, and NADAGuides 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...


(Absolutely NO SPAM, easy to unsubscribe)
×

About The Author

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

June 2021

May 2021

April 2021

I welcome your car buying questions. Email Me and I'll be glad to answer them!