Find the Best Car Deals Near You ⤵
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.
Signup for The Weekly Newsletter
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
About The Author
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
April 2026
- Best 0% Finance Deals April 2026 Apr 06, 2026
- Best Bang for Your Buck Lease Deals Apr 06, 2026
- Best Electric, Hybrid Lease Deals Apr 06, 2026
- Price Comparison of Subcompact SUVs Apr 06, 2026
March 2026
- Biggest Discounts on New Cars March 2026 Mar 28, 2026
- Worst Cars to Lease Right Now Mar 28, 2026
- Top 100 Cheapest New Cars Right Now Mar 28, 2026
- Real Prices of Midsize SUVs Mar 28, 2026
- Top 100 Cheapest Lease Deals Mar 14, 2026
- All SUV Lease Deals Compared March 2026 Mar 14, 2026
- New Cars with the Most Available Inventory Mar 14, 2026
- Real Prices of Compact Cars Mar 14, 2026
- Real Prices of New Compact SUVs Mar 06, 2026
I welcome your car buying questions. Email Me and I'll be glad to answer them!



